Industry Analysts Just Made A Substantial Upgrade To Their TKP Corporation (TSE:3479) Revenue Forecasts

TKP Corporation (TSE:3479) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. TKP has also found favour with investors, with the stock up a worthy 12% to JP¥1,634 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the latest consensus from TKP's three analysts is for revenues of JP¥52b in 2025, which would reflect a huge 37% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to ascend 15% to JP¥116. Previously, the analysts had been modelling revenues of JP¥43b and earnings per share (EPS) of JP¥111 in 2025. The most recent forecasts are noticeably more optimistic, with a chunky increase in revenue estimates and a lift to earnings per share as well.

View our latest analysis for TKP

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 TKP is forecast to grow faster in the future than it has in the past, with revenues expected to display 53% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.3% 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 4.4% annually. Not only are TKP's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at TKP.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple TKP analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.

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