The Okinawa Cellular Telephone Company (TSE:9436) Annual Results Are Out And Analysts Have Published New Forecasts

It's been a good week for Okinawa Cellular Telephone Company (TSE:9436) shareholders, because the company has just released its latest full-year results, and the shares gained 6.0% to JP¥3,630. Okinawa Cellular Telephone reported JP¥78b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥245 beat expectations, being 3.7% higher than what the analysts expected. 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 Okinawa Cellular Telephone after the latest results.

See our latest analysis for Okinawa Cellular Telephone

Taking into account the latest results, the consensus forecast from Okinawa Cellular Telephone's three analysts is for revenues of JP¥81.6b in 2025. This reflects a credible 4.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 6.4% to JP¥267. Before this earnings report, the analysts had been forecasting revenues of JP¥81.2b and earnings per share (EPS) of JP¥249 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of JP¥3,830, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on Okinawa Cellular Telephone, with the most bullish analyst valuing it at JP¥3,930 and the most bearish at JP¥3,730 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.

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 clear from the latest estimates that Okinawa Cellular Telephone's rate of growth is expected to accelerate meaningfully, with the forecast 4.6% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Okinawa Cellular Telephone to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Okinawa Cellular Telephone following these results. 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. The consensus price target held steady at JP¥3,830, with the latest estimates not enough to have an impact on their price targets.

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 Okinawa Cellular Telephone analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Okinawa Cellular Telephone has 1 warning sign we think you should be aware of.

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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.