Results: JINUSHI Co.,Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, JINUSHI Co.,Ltd. (TSE:3252) just kicked off its latest half-yearly results with some very strong numbers. The company beat forecasts, with revenue of JP¥40b, some 8.3% above estimates, and statutory earnings per share (EPS) coming in at JP¥46.88, 147% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, JINUSHILtd's four analysts are now forecasting revenues of JP¥70.6b in 2025. This would be a major 36% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 76% to JP¥312. Before this earnings report, the analysts had been forecasting revenues of JP¥69.3b and earnings per share (EPS) of JP¥307 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.

View our latest analysis for JINUSHILtd

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.5% to JP¥2,985. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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. The most optimistic JINUSHILtd analyst has a price target of JP¥3,400 per share, while the most pessimistic values it at JP¥2,400. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the JINUSHILtd's past performance and to peers in the same 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 85% annualised growth until the end of 2025. If achieved, this would be a much better result than the 6.6% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.3% annually. So it looks like JINUSHILtd is expected to grow faster than its competitors, at least for a while.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for JINUSHILtd going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for JINUSHILtd (1 is a bit concerning!) that you need to be mindful of.

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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.