TV TOKYO Holdings Corporation (TSE:9413) Just Reported Earnings, And Analysts Cut Their Target Price

Shareholders of TV TOKYO Holdings Corporation (TSE:9413) will be pleased this week, given that the stock price is up 14% to JP¥3,680 following its latest third-quarter results. TV TOKYO Holdings reported in line with analyst predictions, delivering revenues of JP¥41b and statutory earnings per share of JP¥248, suggesting the business is executing well and in line with its plan. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for TV TOKYO Holdings

After the latest results, the four analysts covering TV TOKYO Holdings are now predicting revenues of JP¥157.2b in 2026. If met, this would reflect a modest 2.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 11% to JP¥245. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥157.5b and earnings per share (EPS) of JP¥244 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target fell 8.5% to JP¥3,693, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. 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 TV TOKYO Holdings, with the most bullish analyst valuing it at JP¥4,170 and the most bearish at JP¥3,160 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that TV TOKYO Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 2.2% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.5% 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 4.1% per year. So it's clear that despite the acceleration in growth, TV TOKYO Holdings is expected to grow meaningfully slower than the industry average.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that TV TOKYO Holdings' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of TV TOKYO Holdings' future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple TV TOKYO Holdings analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of TV TOKYO Holdings' 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.