USS Co., Ltd. (TSE:4732) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Investors in USS Co., Ltd. (TSE:4732) had a good week, as its shares rose 4.5% to close at JP¥1,506 following the release of its full-year results. The result was positive overall - although revenues of JP¥104b were in line with what the analysts predicted, USS surprised by delivering a statutory profit of JP¥78.65 per share, modestly greater than expected. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the six analysts covering USS are now predicting revenues of JP¥108.9b in 2026. If met, this would reflect a modest 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 2.6% to JP¥81.29. Before this earnings report, the analysts had been forecasting revenues of JP¥107.8b and earnings per share (EPS) of JP¥79.96 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for USS

The analysts reconfirmed their price target of JP¥1,532, showing that the business is executing well and in line with 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. There are some variant perceptions on USS, with the most bullish analyst valuing it at JP¥1,660 and the most bearish at JP¥1,450 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We would highlight that USS' revenue growth is expected to slow, with the forecast 4.7% annualised growth rate until the end of 2026 being well below the historical 7.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that USS is also expected to grow slower than other industry participants.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that USS' revenue is expected to perform worse than the wider industry. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for USS going out to 2028, and you can see them free on our platform here.

We also provide an overview of the USS Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.