Hankyu Hanshin Holdings, Inc. (TSE:9042) Annual Results: Here's What Analysts Are Forecasting For This Year

The annual results for Hankyu Hanshin Holdings, Inc. (TSE:9042) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of JP¥998b were in line with what the analysts predicted, Hankyu Hanshin Holdings surprised by delivering a statutory profit of JP¥282 per share, modestly greater than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Hankyu Hanshin Holdings

Following the latest results, Hankyu Hanshin Holdings' three analysts are now forecasting revenues of JP¥1.02t in 2025. This would be a modest 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 5.1% to JP¥297. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.01t and earnings per share (EPS) of JP¥288 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¥4,750, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Hankyu Hanshin Holdings at JP¥4,800 per share, while the most bearish prices it at JP¥4,700. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company 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. We would highlight that Hankyu Hanshin Holdings' revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2025 being well below the historical 7.5% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Hankyu Hanshin Holdings.

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 Hankyu Hanshin Holdings following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hankyu Hanshin Holdings' revenue is expected to perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Hankyu Hanshin Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Hankyu Hanshin Holdings analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Hankyu Hanshin Holdings (of which 1 is concerning!) you should know about.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com