Here's What Analysts Are Forecasting For U-NEXT HOLDINGS Co.,Ltd. (TSE:9418) After Its First-Quarter Results

It's been a good week for U-NEXT HOLDINGS Co.,Ltd. (TSE:9418) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.0% to JP¥1,772. It was a workmanlike result, with revenues of JP¥92b coming in 3.9% ahead of expectations, and statutory earnings per share of JP¥85.15, in line with analyst appraisals. 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.

Check out our latest analysis for U-NEXT HOLDINGSLtd

Taking into account the latest results, the consensus forecast from U-NEXT HOLDINGSLtd's four analysts is for revenues of JP¥370.7b in 2025. This reflects an okay 7.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 10% to JP¥95.94. Before this earnings report, the analysts had been forecasting revenues of JP¥365.9b and earnings per share (EPS) of JP¥95.28 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,844. 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. There are some variant perceptions on U-NEXT HOLDINGSLtd, with the most bullish analyst valuing it at JP¥1,920 and the most bearish at JP¥1,667 per share. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that U-NEXT HOLDINGSLtd's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.7% per year. So it's pretty clear that, while U-NEXT HOLDINGSLtd's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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.

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 U-NEXT HOLDINGSLtd going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether U-NEXT HOLDINGSLtd's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.