Analyst Estimates: Here's What Brokers Think Of Zenrin Co., Ltd. (TSE:9474) After Its Third-Quarter Report

It's been a good week for Zenrin Co., Ltd. (TSE:9474) shareholders, because the company has just released its latest third-quarter results, and the shares gained 2.4% to JP¥887. It was a workmanlike result, with revenues of JP¥16b coming in 2.3% ahead of expectations, and statutory earnings per share of JP¥38.94, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Zenrin

Taking into account the latest results, the consensus forecast from Zenrin's five analysts is for revenues of JP¥66.7b in 2026. This reflects an okay 4.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decline 15% to JP¥55.68 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥66.5b and earnings per share (EPS) of JP¥54.56 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥980, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Zenrin, with the most bullish analyst valuing it at JP¥1,150 and the most bearish at JP¥850 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Zenrin shareholders.

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. It's clear from the latest estimates that Zenrin's rate of growth is expected to accelerate meaningfully, with the forecast 3.8% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.3% annually. Zenrin 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 Zenrin's 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¥980, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Zenrin going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Zenrin that you need to take into consideration.

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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.