JP¥2,993 - That's What Analysts Think United Arrows Ltd. (TSE:7606) Is Worth After These Results

It's been a sad week for United Arrows Ltd. (TSE:7606), who've watched their investment drop 14% to JP¥2,273 in the week since the company reported its quarterly result. United Arrows reported JP¥45b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥115 beat expectations, being 3.3% higher than what the analysts expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for United Arrows

Taking into account the latest results, the consensus forecast from United Arrows' six analysts is for revenues of JP¥158.6b in 2026. This reflects an okay 7.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.6% to JP¥222. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥158.5b and earnings per share (EPS) of JP¥222 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.1% to JP¥2,993. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic United Arrows analyst has a price target of JP¥3,300 per share, while the most pessimistic values it at JP¥2,670. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 United Arrows' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.9% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 0.6% 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 6.9% annually. So while United Arrows' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for United Arrows going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for United Arrows you should know about.

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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.