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

GOLDCREST Co.,Ltd. (TSE:8871) just released its half-yearly report and things are looking bullish. Statutory revenue of JP¥14b and earnings of JP¥36.27 both blasted past expectations, beating expectations by 32% and 64%, respectively, 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for GOLDCRESTLtd

Taking into account the latest results, the current consensus, from the twin analysts covering GOLDCRESTLtd, is for revenues of JP¥28.1b in 2025. This implies an uncomfortable 13% reduction in GOLDCRESTLtd's revenue over the past 12 months. Statutory earnings per share are forecast to tumble 27% to JP¥134 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥26.6b and earnings per share (EPS) of JP¥128 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of JP¥2,835, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One more thing stood out to us about these estimates, and it's the idea that GOLDCRESTLtd's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 24% to the end of 2025. This tops off a historical decline of 8.5% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 4.1% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect GOLDCRESTLtd to suffer worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards GOLDCRESTLtd following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at JP¥2,835, with the latest estimates not enough to have an impact on their price targets.

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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign 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.