Results: Resonac Holdings Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders might have noticed that Resonac Holdings Corporation (TSE:4004) filed its annual result this time last week. The early response was not positive, with shares down 2.6% to JP¥3,681 in the past week. It looks like a credible result overall - although revenues of JP¥1.4t were what the analysts expected, Resonac Holdings surprised by delivering a (statutory) profit of JP¥307 per share, an impressive 42% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Resonac Holdings

Taking into account the latest results, the consensus forecast from Resonac Holdings' eight analysts is for revenues of JP¥1.46t in 2025. This reflects a satisfactory 5.3% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥301, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥1.46t and earnings per share (EPS) of JP¥303 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of JP¥4,837, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Resonac Holdings analyst has a price target of JP¥5,760 per share, while the most pessimistic values it at JP¥3,510. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Resonac Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.3% growth on an annualised basis. This is compared to a historical growth rate of 8.5% over the past five years. Compare this to the 158 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.0% per year. Factoring in the forecast slowdown in growth, it looks like Resonac Holdings is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥4,837, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Resonac Holdings going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Resonac Holdings , and understanding this should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.