Seibu Holdings Inc. (TSE:9024) Just Reported Interim Earnings And Analysts Are Lifting Their Estimates

Investors in Seibu Holdings Inc. (TSE:9024) had a good week, as its shares rose 4.0% to close at JP¥3,539 following the release of its interim results. Seibu Holdings reported in line with analyst predictions, delivering revenues of JP¥127b and statutory earnings per share of JP¥204, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Seibu Holdings after the latest results.

Check out our latest analysis for Seibu Holdings

Taking into account the latest results, the most recent consensus for Seibu Holdings from four analysts is for revenues of JP¥760.1b in 2025. If met, it would imply a substantial 55% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 111% to JP¥587. Before this earnings report, the analysts had been forecasting revenues of JP¥715.3b and earnings per share (EPS) of JP¥542 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of JP¥2,463, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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 Seibu Holdings at JP¥3,480 per share, while the most bearish prices it at JP¥2,020. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. One thing stands out from these estimates, which is that Seibu Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 140% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.3% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 2.5% annually. So it looks like Seibu Holdings is expected to grow faster than its competitors, at least for a while.

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 Seibu Holdings following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at JP¥2,463, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Seibu Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Seibu Holdings 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 4 warning signs for Seibu Holdings you should be aware of, and 2 of them are concerning.

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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.