Earnings Beat: V Technology Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

V Technology Co., Ltd. (TSE:7717) just released its latest third-quarter results and things are looking bullish. The company beat forecasts, with revenue of JP¥9.5b, some 4.5% above estimates, and statutory earnings per share (EPS) coming in at JP¥28.44, 37% ahead of expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for V Technology

Following last week's earnings report, V Technology's three analysts are forecasting 2026 revenues to be JP¥49.5b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 4.0% to JP¥244. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥48.1b and earnings per share (EPS) of JP¥239 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥3,567, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 V Technology analyst has a price target of JP¥4,250 per share, while the most pessimistic values it at JP¥3,200. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 7.0% 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 see their revenue grow 7.2% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect V Technology to suffer worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around V Technology's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at JP¥3,567, 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 V Technology going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for V Technology you should know about.

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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.