Here's What Analysts Are Forecasting For SCSK Corporation (TSE:9719) After Its Half-Yearly Results

Investors in SCSK Corporation (TSE:9719) had a good week, as its shares rose 2.1% to close at JP¥2,867 following the release of its half-year results. It was a workmanlike result, with revenues of JP¥252b coming in 2.0% ahead of expectations, and statutory earnings per share of JP¥32.04, in line with analyst appraisals. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for SCSK

After the latest results, the ten analysts covering SCSK are now predicting revenues of JP¥512.7b in 2025. If met, this would reflect a modest 2.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.0% to JP¥142. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥512.4b and earnings per share (EPS) of JP¥142 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.

The analysts reconfirmed their price target of JP¥3,202, 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 SCSK analyst has a price target of JP¥3,520 per share, while the most pessimistic values it at JP¥3,000. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting SCSK is an easy business to forecast or the the analysts are all using similar assumptions.

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. We can infer from the latest estimates that forecasts expect a continuation of SCSK'shistorical trends, as the 4.9% annualised revenue growth to the end of 2025 is roughly in line with the 5.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.2% annually. So although SCSK is expected to maintain its revenue growth rate, it's only growing at about the rate of 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for SCSK going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.