Heiwa Real Estate Co., Ltd. (TSE:8803) Yearly Results: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that Heiwa Real Estate Co., Ltd. (TSE:8803) released its annual result to the market. The early response was not positive, with shares down 6.1% to JP¥3,880 in the past week. Heiwa Real Estate reported in line with analyst predictions, delivering revenues of JP¥44b and statutory earnings per share of JP¥236, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Heiwa Real Estate

Following the recent earnings report, the consensus from three analysts covering Heiwa Real Estate is for revenues of JP¥41.6b in 2025. This implies a measurable 6.4% decline in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥239, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥45.4b and earnings per share (EPS) of JP¥244 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the JP¥4,237 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Heiwa Real Estate, with the most bullish analyst valuing it at JP¥4,680 and the most bearish at JP¥3,850 per share. This is a very narrow spread of estimates, implying either that Heiwa Real Estate is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.4% by the end of 2025. This indicates a significant reduction from annual growth of 2.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.3% per year. It's pretty clear that Heiwa Real Estate's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Heiwa Real Estate. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at JP¥4,237, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Heiwa Real Estate going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Heiwa Real Estate (1 is a bit unpleasant!) that you need to take into consideration.

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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.