Net One Systems Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Net One Systems Co., Ltd. (TSE:7518) just released its first-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 9.2% to hit JP¥46b. Net One Systems also reported a statutory profit of JP¥32.40, which was an impressive 88% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Net One Systems

After the latest results, the ten analysts covering Net One Systems are now predicting revenues of JP¥217.7b in 2025. If met, this would reflect a modest 4.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 6.1% to JP¥181 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥217.5b and earnings per share (EPS) of JP¥179 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¥3,246, 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. Currently, the most bullish analyst values Net One Systems at JP¥3,810 per share, while the most bearish prices it at JP¥2,650. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. The analysts are definitely expecting Net One Systems' growth to accelerate, with the forecast 6.2% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Net One Systems 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. At Simply Wall St, we have a full range of analyst estimates for Net One Systems going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Net One Systems has 1 warning sign we think you should be aware of.

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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.