Earnings Release: Here's Why Analysts Cut Their Hibino Corporation (TSE:2469) Price Target To JP¥3,700

As you might know, Hibino Corporation (TSE:2469) recently reported its half-yearly numbers. Results were roughly in line with estimates, with revenues of JP¥31b and statutory earnings per share of JP¥173. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Hibino from twin analysts is for revenues of JP¥68.3b in 2026. If met, it would imply a modest 6.9% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 22% to JP¥280. Before this earnings report, the analysts had been forecasting revenues of JP¥67.2b and earnings per share (EPS) of JP¥263 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Hibino

The average the analysts price target fell 7.5% to JP¥3,700, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them.

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. We can infer from the latest estimates that forecasts expect a continuation of Hibino'shistorical trends, as the 14% annualised revenue growth to the end of 2026 is roughly in line with the 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.5% annually. So it's pretty clear that Hibino is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Hibino following these results. 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Hibino. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Hibino going out as far as 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Hibino that 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.