Analyst Estimates: Here's What Brokers Think Of SHIMAMURA Co., Ltd. (TSE:8227) After Its Interim Report

Shareholders might have noticed that SHIMAMURA Co., Ltd. (TSE:8227) filed its half-year result this time last week. The early response was not positive, with shares down 9.7% to JP¥9,890 in the past week. Results were roughly in line with estimates, with revenues of JP¥344b and statutory earnings per share of JP¥165. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, SHIMAMURA's twelve analysts are forecasting 2026 revenues to be JP¥691.5b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 4.4% to JP¥607. Before this earnings report, the analysts had been forecasting revenues of JP¥690.9b and earnings per share (EPS) of JP¥607 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.

See our latest analysis for SHIMAMURA

There were no changes to revenue or earnings estimates or the price target of JP¥10,317, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values SHIMAMURA at JP¥13,200 per share, while the most bearish prices it at JP¥8,300. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await SHIMAMURA shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that SHIMAMURA's revenue growth is expected to slow, with the forecast 3.5% annualised growth rate until the end of 2026 being well below the historical 4.8% 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 6.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that SHIMAMURA is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥10,317, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple SHIMAMURA analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for SHIMAMURA that you need to take into consideration.

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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.