OBIC Co.,Ltd. (TSE:4684) Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a good week for OBIC Co.,Ltd. (TSE:4684) shareholders, because the company has just released its latest half-year results, and the shares gained 8.8% to JP¥5,117. OBICLtd reported JP¥59b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥34.74 beat expectations, being 2.5% higher than what the analysts expected. 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. 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.

Check out our latest analysis for OBICLtd

Following the latest results, OBICLtd's ten analysts are now forecasting revenues of JP¥122.4b in 2025. This would be a satisfactory 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 3.3% to JP¥145. In the lead-up to this report, the analysts had been modelling revenues of JP¥122.8b and earnings per share (EPS) of JP¥145 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.

There were no changes to revenue or earnings estimates or the price target of JP¥4,850, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values OBICLtd at JP¥5,900 per share, while the most bearish prices it at JP¥4,360. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% 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 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. The consensus price target held steady at JP¥4,850, with the latest estimates not enough to have an impact on their price targets.

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.