Hulic Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Hulic Co., Ltd. (TSE:3003) had a good week, as its shares rose 4.5% to close at JP¥1,421 following the release of its third-quarter results. It looks like a pretty bad result, all things considered. Although revenues of JP¥110b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 30% to hit JP¥13.74 per share. The analysts 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Hulic

Following the latest results, Hulic's six analysts are now forecasting revenues of JP¥591.9b in 2025. This would be a major 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 16% to JP¥138. In the lead-up to this report, the analysts had been modelling revenues of JP¥544.4b and earnings per share (EPS) of JP¥136 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of JP¥1,640, suggesting the analysts are focused on earnings as the driver of value creation. 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. Currently, the most bullish analyst values Hulic at JP¥1,800 per share, while the most bearish prices it at JP¥1,530. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Hulic is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting Hulic's growth to accelerate, with the forecast 18% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.3% per annum 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Hulic is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at JP¥1,640, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Hulic analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Hulic you should be aware of, and 1 of them shouldn't be ignored.

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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.