Analysts Are Updating Their Central Japan Railway Company (TSE:9022) Estimates After Its Interim Results

It's been a good week for Central Japan Railway Company (TSE:9022) shareholders, because the company has just released its latest half-year results, and the shares gained 3.5% to JP¥3,174. Central Japan Railway reported in line with analyst predictions, delivering revenues of JP¥874b and statutory earnings per share of JP¥237, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Central Japan Railway

Following last week's earnings report, Central Japan Railway's twelve analysts are forecasting 2025 revenues to be JP¥1.79t, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 4.0% to JP¥413 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥1.78t and earnings per share (EPS) of JP¥407 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¥3,765, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Central Japan Railway, with the most bullish analyst valuing it at JP¥4,400 and the most bearish at JP¥3,120 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 2.5% growth on an annualised basis. That is in line with its 2.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 2.8% per year. It's clear that while Central Japan Railway's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥3,765, 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. We have estimates - from multiple Central Japan Railway analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Central Japan Railway 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.