Stock Analysis

Shin Nippon Biomedical Laboratories, Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

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Shin Nippon Biomedical Laboratories, Ltd. (TSE:2395) shareholders are probably feeling a little disappointed, since its shares fell 8.7% to JP¥1,402 in the week after its latest yearly results. Revenues were JP¥26b, approximately in line with whatthe analyst expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥133, an impressive 39% ahead of estimates. The analyst 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

Check out our latest analysis for Shin Nippon Biomedical Laboratories

TSE:2395 Earnings and Revenue Growth May 10th 2024

Following the latest results, Shin Nippon Biomedical Laboratories' lone analyst are now forecasting revenues of JP¥30.5b in 2025. This would be a notable 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plunge 22% to JP¥103 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥31.5b and earnings per share (EPS) of JP¥127 in 2025. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The consensus price target fell 14% to JP¥3,150, with the weaker earnings outlook clearly leading valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So although Shin Nippon Biomedical Laboratories is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shin Nippon Biomedical Laboratories. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Shin Nippon Biomedical Laboratories' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Shin Nippon Biomedical Laboratories (1 is significant!) that you need to take into consideration.

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Find out whether Shin Nippon Biomedical Laboratories is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.