SCREEN Holdings Co., Ltd. Just Beat EPS By 8.4%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that SCREEN Holdings Co., Ltd. (TSE:7735) released its yearly result to the market. The early response was not positive, with shares down 7.2% to JP¥15,445 in the past week. The result was positive overall - although revenues of JP¥505b were in line with what the analysts predicted, SCREEN Holdings surprised by delivering a statutory profit of JP¥742 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for SCREEN Holdings

Taking into account the latest results, the current consensus from SCREEN Holdings' 15 analysts is for revenues of JP¥547.7b in 2025. This would reflect a notable 8.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 6.9% to JP¥777. Before this earnings report, the analysts had been forecasting revenues of JP¥536.0b and earnings per share (EPS) of JP¥771 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of JP¥19,043, implying that the uplift in revenue is not expected to greatly contribute to SCREEN Holdings's valuation in the near term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on SCREEN Holdings, with the most bullish analyst valuing it at JP¥23,650 and the most bearish at JP¥12,000 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of SCREEN Holdings'historical trends, as the 8.5% annualised revenue growth to the end of 2025 is roughly in line with the 9.2% annual growth 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 revenues grow 13% per year. So it's pretty clear that SCREEN Holdings is expected to grow slower than similar companies in the same industry.

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. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at JP¥19,043, with the latest estimates not enough to have an impact on their price targets.

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 SCREEN Holdings going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with SCREEN Holdings , and understanding them should be part of your investment process.

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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.