Zenrin Co., Ltd. (TSE:9474) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

Last week saw the newest half-yearly earnings release from Zenrin Co., Ltd. (TSE:9474), an important milestone in the company's journey to build a stronger business. Revenues came in 2.7% below expectations, at JP¥29b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥38.94 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Zenrin

Taking into account the latest results, Zenrin's five analysts currently expect revenues in 2025 to be JP¥64.1b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dive 21% to JP¥47.38 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥64.3b and earnings per share (EPS) of JP¥46.51 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥980, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Zenrin analyst has a price target of JP¥1,150 per share, while the most pessimistic values it at JP¥850. 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.

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 Zenrin's rate of growth is expected to accelerate meaningfully, with the forecast 4.0% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 0.7% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 4.0% per year. 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 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Zenrin going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Zenrin that we have uncovered.

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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.