Earnings Update: SHIMAMURA Co., Ltd. (TSE:8227) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

It's been a good week for SHIMAMURA Co., Ltd. (TSE:8227) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.3% to JP¥9,013. It was a credible result overall, with revenues of JP¥167b and statutory earnings per share of JP¥157 both in line with analyst estimates, showing that SHIMAMURA is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SHIMAMURA after the latest results.

View our latest analysis for SHIMAMURA

Taking into account the latest results, the current consensus from SHIMAMURA's twelve analysts is for revenues of JP¥682.6b in 2026. This would reflect an okay 4.3% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 4.9% to JP¥580. In the lead-up to this report, the analysts had been modelling revenues of JP¥681.5b and earnings per share (EPS) of JP¥581 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.

There were no changes to revenue or earnings estimates or the price target of JP¥8,667, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values SHIMAMURA at JP¥10,100 per share, while the most bearish prices it at JP¥7,600. This is a very narrow spread of estimates, implying either that SHIMAMURA is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that SHIMAMURA's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.4% growth on an annualised basis. This is compared to a historical growth rate of 5.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.9% annually. 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 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 SHIMAMURA's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥8,667, 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 forecasts for SHIMAMURA going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for SHIMAMURA 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.