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

GOLDCREST Co.,Ltd. (TSE:8871) just released its latest full-year results and things are looking bullish. The company beat expectations with revenues of JP¥25b arriving 5.3% ahead of forecasts. Statutory earnings per share (EPS) were JP¥113, 10.0% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for GOLDCRESTLtd

After the latest results, the dual analysts covering GOLDCRESTLtd are now predicting revenues of JP¥27.5b in 2025. If met, this would reflect a solid 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 18% to JP¥133. In the lead-up to this report, the analysts had been modelling revenues of JP¥28.7b and earnings per share (EPS) of JP¥128 in 2025. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

There's been no real change to the average price target of JP¥2,525, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that GOLDCRESTLtd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 10% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 11% a year 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. So it looks like GOLDCRESTLtd is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around GOLDCRESTLtd's earnings potential next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. 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 GOLDCRESTLtd. Long-term earnings power is much more important than next year's profits. We have analyst estimates for GOLDCRESTLtd going out as far as 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for GOLDCRESTLtd that you should be aware 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.