Earnings Update: Valqua, Ltd. (TSE:7995) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Investors in Valqua, Ltd. (TSE:7995) had a good week, as its shares rose 3.4% to close at JP¥3,465 following the release of its quarterly results. Revenues came in 3.6% below expectations, at JP¥14b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥266 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Valqua after the latest results.

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Taking into account the latest results, the current consensus from Valqua's three analysts is for revenues of JP¥61.7b in 2026. This would reflect a reasonable 4.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.0% to JP¥280. In the lead-up to this report, the analysts had been modelling revenues of JP¥61.7b and earnings per share (EPS) of JP¥282 in 2026. 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.

View our latest analysis for Valqua

The analysts reconfirmed their price target of JP¥4,213, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Valqua, with the most bullish analyst valuing it at JP¥4,640 and the most bearish at JP¥4,000 per share. This is a very narrow spread of estimates, implying either that Valqua is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Valqua'shistorical trends, as the 6.5% annualised revenue growth to the end of 2026 is roughly in line with the 7.1% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.0% annually. So it's pretty clear that Valqua is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Valqua going out to 2028, 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 Valqua you should know about.

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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.