Earnings Update: TIS Inc. (TSE:3626) Just Reported Its Half-Yearly Results And Analysts Are Updating Their Forecasts

It's been a good week for TIS Inc. (TSE:3626) shareholders, because the company has just released its latest half-year results, and the shares gained 7.7% to JP¥5,170. It looks like the results were a bit of a negative overall. While revenues of JP¥289b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.8% to hit JP¥49.08 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, TIS' ten analysts currently expect revenues in 2026 to be JP¥591.9b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 4.1% to JP¥224 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥586.3b and earnings per share (EPS) of JP¥219 in 2026. So the consensus seems to have become somewhat more optimistic on TIS' earnings potential following these results.

See our latest analysis for TIS

There's been no major changes to the consensus price target of JP¥5,177, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic TIS analyst has a price target of JP¥5,900 per share, while the most pessimistic values it at JP¥4,500. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting TIS is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TIS' past performance and to peers in the same industry. We would highlight that TIS' revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2026 being well below the historical 5.8% 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 5.3% 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 TIS.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards TIS following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that TIS' 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.

With that in mind, we wouldn't be too quick to come to a conclusion on TIS. Long-term earnings power is much more important than next year's profits. We have forecasts for TIS going out to 2028, and you can see them free on our platform here.

We also provide an overview of the TIS Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.