Results: Internet Initiative Japan Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Internet Initiative Japan Inc. (TSE:3774) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 6.5% to hit JP¥72b. Internet Initiative Japan also reported a statutory profit of JP¥18.78, which was an impressive 32% above what the analysts had forecast. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Internet Initiative Japan

Following the latest results, Internet Initiative Japan's eight analysts are now forecasting revenues of JP¥310.6b in 2025. This would be a solid 8.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 6.4% to JP¥118. In the lead-up to this report, the analysts had been modelling revenues of JP¥308.3b and earnings per share (EPS) of JP¥117 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¥3,256, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Internet Initiative Japan analyst has a price target of JP¥3,800 per share, while the most pessimistic values it at JP¥2,870. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Internet Initiative Japan is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Internet Initiative Japan's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.4% 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 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. We have estimates - from multiple Internet Initiative Japan analysts - 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.