JCU Corporation (TSE:4975) Just Reported, And Analysts Assigned A JP¥4,700 Price Target

JCU Corporation (TSE:4975) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. Revenues came in 4.6% below expectations, at JP¥5.9b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥217 being roughly in line with analyst estimates. Following the result, the analyst has 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

See our latest analysis for JCU

Taking into account the latest results, the most recent consensus for JCU from sole analyst is for revenues of JP¥27.0b in 2025. If met, it would imply a satisfactory 5.7% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 8.3% to JP¥261. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥27.5b and earnings per share (EPS) of JP¥276 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a small dip in their earnings per share forecasts.

The average price target fell 6.0% to JP¥4,700, with reduced earnings forecasts clearly tied to a lower valuation estimate.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that JCU's rate of growth is expected to accelerate meaningfully, with the forecast 7.7% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that JCU is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of JCU's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You can also see our analysis of JCU's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.