OBIC Co.,Ltd. (TSE:4684) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates

Shareholders might have noticed that OBIC Co.,Ltd. (TSE:4684) filed its annual result this time last week. The early response was not positive, with shares down 3.9% to JP¥20,375 in the past week. The result was positive overall - although revenues of JP¥112b were in line with what the analysts predicted, OBICLtd surprised by delivering a statutory profit of JP¥655 per share, modestly greater than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for OBICLtd

After the latest results, the eleven analysts covering OBICLtd are now predicting revenues of JP¥123.3b in 2025. If met, this would reflect a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.1% to JP¥706. In the lead-up to this report, the analysts had been modelling revenues of JP¥123.4b and earnings per share (EPS) of JP¥707 in 2025. 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.

The analysts reconfirmed their price target of JP¥24,155, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic OBICLtd analyst has a price target of JP¥27,000 per share, while the most pessimistic values it at JP¥20,000. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that OBICLtd's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that OBICLtd is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 OBICLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple OBICLtd analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the OBICLtd 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.