Internet Initiative Japan Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Investors in Internet Initiative Japan Inc. (TSE:3774) had a good week, as its shares rose 7.6% to close at JP¥3,039 following the release of its interim results. Internet Initiative Japan reported JP¥75b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥23.47 beat expectations, being 8.1% higher than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Internet Initiative Japan

Taking into account the latest results, the most recent consensus for Internet Initiative Japan from eight analysts is for revenues of JP¥312.8b in 2025. If met, it would imply an okay 6.1% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 12% to JP¥121. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥312.6b and earnings per share (EPS) of JP¥121 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¥3,529, suggesting that the company has met expectations in its recent result. 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 Internet Initiative Japan at JP¥3,800 per share, while the most bearish prices it at JP¥3,400. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Internet Initiative Japan's growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Internet Initiative Japan to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Internet Initiative Japan going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Internet Initiative Japan Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.