Results: Internet Initiative Japan Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Internet Initiative Japan Inc. (TSE:3774) just released its latest third-quarter results and things are looking bullish. Internet Initiative Japan beat earnings, with revenues hitting JP¥82b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. 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.

See our latest analysis for Internet Initiative Japan

Following the latest results, Internet Initiative Japan's eight analysts are now forecasting revenues of JP¥342.1b in 2026. This would be a solid 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 23% to JP¥144. In the lead-up to this report, the analysts had been modelling revenues of JP¥341.9b and earnings per share (EPS) of JP¥144 in 2026. 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¥3,563, suggesting that the company has met expectations in its recent result. 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¥3,450. 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.

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 Internet Initiative Japan'shistorical trends, as the 9.8% annualised revenue growth to the end of 2026 is roughly in line with the 8.3% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.8% annually. So it's pretty clear that Internet Initiative Japan is forecast to grow substantially faster than its 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. 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.

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.