JINUSHI Co.,Ltd. Just Beat EPS By 15%: Here's What Analysts Think Will Happen Next

The annual results for JINUSHI Co.,Ltd. (TSE:3252) were released last week, making it a good time to revisit its performance. Revenues were JP¥57b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥335 were also better than expected, beating analyst predictions by 15%. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for JINUSHILtd

Taking into account the latest results, the current consensus from JINUSHILtd's three analysts is for revenues of JP¥70.1b in 2025. This would reflect a major 23% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be JP¥297, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥65.8b and earnings per share (EPS) of JP¥304 in 2025. So it's pretty clear consensus is mixed on JINUSHILtd after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

There's been no major changes to the price target of JP¥3,085, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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 JINUSHILtd, with the most bullish analyst valuing it at JP¥3,560 and the most bearish at JP¥2,610 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that JINUSHILtd is forecast to grow faster in the future than it has in the past, with revenues expected to display 23% annualised growth until the end of 2025. If achieved, this would be a much better result than the 8.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.1% per year. So it looks like JINUSHILtd is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for JINUSHILtd. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider 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 in mind, we wouldn't be too quick to come to a conclusion on JINUSHILtd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for JINUSHILtd going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with JINUSHILtd (at least 1 which shouldn't be ignored) , and understanding these should be part of your investment process.

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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.