Earnings Update: U-NEXT HOLDINGS Co.,Ltd. (TSE:9418) Just Reported Its Half-Yearly Results And Analysts Are Updating Their Forecasts

Investors in U-NEXT HOLDINGS Co.,Ltd. (TSE:9418) had a good week, as its shares rose 5.6% to close at JP¥1,842 following the release of its interim results. Results were roughly in line with estimates, with revenues of JP¥95b and statutory earnings per share of JP¥85.15. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on U-NEXT HOLDINGSLtd after the latest results.

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Taking into account the latest results, the current consensus from U-NEXT HOLDINGSLtd's four analysts is for revenues of JP¥376.2b in 2025. This would reflect a reasonable 4.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 11% to JP¥98.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥376.3b and earnings per share (EPS) of JP¥99.20 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for U-NEXT HOLDINGSLtd

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,939. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values U-NEXT HOLDINGSLtd at JP¥2,150 per share, while the most bearish prices it at JP¥1,667. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. It's pretty clear that there is an expectation that U-NEXT HOLDINGSLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.4% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.7% annually. Even after the forecast slowdown in growth, it seems obvious that U-NEXT HOLDINGSLtd is also expected 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥1,939, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for U-NEXT HOLDINGSLtd going out to 2027, and you can see them free on our platform here. .

You can also see whether U-NEXT HOLDINGSLtd is carrying too much debt, and whether its balance sheet is healthy, for free 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.