United Arrows Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

United Arrows Ltd. (TSE:7606) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The result was positive overall - although revenues of JP¥134b were in line with what the analysts predicted, United Arrows surprised by delivering a statutory profit of JP¥175 per share, modestly greater than 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for United Arrows

Taking into account the latest results, the most recent consensus for United Arrows from six analysts is for revenues of JP¥143.1b in 2025. If met, it would imply a credible 6.6% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dip 8.2% to JP¥162 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥141.2b and earnings per share (EPS) of JP¥178 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at JP¥2,112, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on United Arrows, with the most bullish analyst valuing it at JP¥2,500 and the most bearish at JP¥1,700 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that United Arrows is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.6% annualised growth until the end of 2025. If achieved, this would be a much better result than the 4.7% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.7% per year. So it looks like United Arrows is expected to grow at about the same rate as 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 United Arrows. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on United Arrows. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for United Arrows going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for United Arrows 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.