Earnings Update: TV TOKYO Holdings Corporation (TSE:9413) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that TV TOKYO Holdings Corporation (TSE:9413) filed its first-quarter result this time last week. The early response was not positive, with shares down 2.4% to JP¥3,455 in the past week. Results were roughly in line with estimates, with revenues of JP¥36b and statutory earnings per share of JP¥248. 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.

View our latest analysis for TV TOKYO Holdings

Taking into account the latest results, the consensus forecast from TV TOKYO Holdings' four analysts is for revenues of JP¥154.6b in 2025. This reflects a reasonable 3.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 17% to JP¥250. Before this earnings report, the analysts had been forecasting revenues of JP¥154.2b and earnings per share (EPS) of JP¥243 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of JP¥3,843, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on TV TOKYO Holdings, with the most bullish analyst valuing it at JP¥4,340 and the most bearish at JP¥3,100 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 clear from the latest estimates that TV TOKYO Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 4.6% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 0.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.0% annually. TV TOKYO Holdings is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around TV TOKYO Holdings' earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥3,843, with the latest estimates not enough to have an impact on their price targets.

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 TV TOKYO 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 TV TOKYO 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.

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