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

Investors in OBIC Co.,Ltd. (TSE:4684) had a good week, as its shares rose 2.8% to close at JP¥4,626 following the release of its third-quarter results. Revenues came in 2.3% below expectations, at JP¥31b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥38.56 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for OBICLtd

Following the latest results, OBICLtd's eleven analysts are now forecasting revenues of JP¥133.4b in 2026. This would be a meaningful 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 12% to JP¥161. Before this earnings report, the analysts had been forecasting revenues of JP¥133.7b and earnings per share (EPS) of JP¥160 in 2026. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥4,947. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values OBICLtd at JP¥5,900 per share, while the most bearish prices it at JP¥4,380. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await OBICLtd shareholders.

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. 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 2026 noticeably faster than its historical growth of 8.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.4% 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.

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 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.