OBIC Co.,Ltd. Just Beat EPS By 7.7%: Here's What Analysts Think Will Happen Next

It's been a good week for OBIC Co.,Ltd. (TSE:4684) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.4% to JP¥22,125. OBICLtd missed revenue estimates by 2.4%, coming in atJP¥29b, although statutory earnings per share (EPS) of JP¥191 beat expectations, coming in 7.7% ahead of analyst estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on OBICLtd after the latest results.

View our latest analysis for OBICLtd

Taking into account the latest results, the current consensus from OBICLtd's eleven analysts is for revenues of JP¥123.0b in 2025. This would reflect a notable 8.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.8% to JP¥716. In the lead-up to this report, the analysts had been modelling revenues of JP¥123.0b and earnings per share (EPS) of JP¥717 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥23,045. 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. Currently, the most bullish analyst values OBICLtd at JP¥27,000 per share, while the most bearish prices it at JP¥20,000. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The analysts are definitely expecting OBICLtd's growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect OBICLtd to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥23,045, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for OBICLtd going out to 2027, and you can see them free on our platform here..

You can also see our analysis of OBICLtd's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.

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