The SCREEN Holdings Co., Ltd. (TSE:7735) Half-Year Results Are Out And Analysts Have Published New Forecasts

Investors in SCREEN Holdings Co., Ltd. (TSE:7735) had a good week, as its shares rose 5.1% to close at JP¥10,015 following the release of its half-yearly results. Results were roughly in line with estimates, with revenues of JP¥277b and statutory earnings per share of JP¥400. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for SCREEN Holdings

Taking into account the latest results, the most recent consensus for SCREEN Holdings from 14 analysts is for revenues of JP¥580.3b in 2025. If met, it would imply a modest 3.8% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decrease 4.9% to JP¥813 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥573.2b and earnings per share (EPS) of JP¥805 in 2025. 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.

The analysts reconfirmed their price target of JP¥13,810, showing that the business is executing well and in line with expectations. 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 SCREEN Holdings, with the most bullish analyst valuing it at JP¥24,350 and the most bearish at JP¥9,700 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SCREEN Holdings' past performance and to peers in the same industry. We would highlight that SCREEN Holdings' revenue growth is expected to slow, with the forecast 7.7% annualised growth rate until the end of 2025 being well below the historical 12% 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 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than SCREEN Holdings.

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 SCREEN Holdings' revenue is expected to perform worse than the wider 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.

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

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for SCREEN Holdings that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.