Stella Chemifa Corporation Just Beat Revenue By 10%: Here's What Analysts Think Will Happen Next

Last week saw the newest first-quarter earnings release from Stella Chemifa Corporation (TSE:4109), an important milestone in the company's journey to build a stronger business. Stella Chemifa beat revenue forecasts by a solid 10% to hit JP¥8.8b. Statutory earnings per share came in at JP¥153, in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Stella Chemifa after the latest results.

View our latest analysis for Stella Chemifa

Taking into account the latest results, the consensus forecast from Stella Chemifa's dual analysts is for revenues of JP¥36.2b in 2025. This reflects a solid 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 50% to JP¥246. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥34.9b and earnings per share (EPS) of JP¥230 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of JP¥4,970, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Stella Chemifa's past performance and to peers in the same industry. For example, we noticed that Stella Chemifa's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 18% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.6% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.6% annually. Not only are Stella Chemifa's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Stella Chemifa following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at JP¥4,970, 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. We have analyst estimates for Stella Chemifa going out as far as 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Stella Chemifa you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.