Mitsui O.S.K. Lines, Ltd. (TSE:9104) Half-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Mitsui O.S.K. Lines, Ltd. (TSE:9104) had a good week, as its shares rose 6.4% to close at JP¥5,179 following the release of its interim results. Mitsui O.S.K. Lines reported JP¥901b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥681 beat expectations, being 2.7% 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Mitsui O.S.K. Lines

Taking into account the latest results, Mitsui O.S.K. Lines' nine analysts currently expect revenues in 2025 to be JP¥1.77t, approximately in line with the last 12 months. Per-share earnings are expected to rise 5.4% to JP¥1,039. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.78t and earnings per share (EPS) of JP¥1,008 in 2025. So the consensus seems to have become somewhat more optimistic on Mitsui O.S.K. Lines' earnings potential following these results.

There's been no major changes to the consensus price target of JP¥5,580, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Mitsui O.S.K. Lines analyst has a price target of JP¥7,300 per share, while the most pessimistic values it at JP¥3,600. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 pretty clear that there is an expectation that Mitsui O.S.K. Lines' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 0.6% per year. Factoring in the forecast slowdown in growth, it's pretty clear that Mitsui O.S.K. Lines is still expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mitsui O.S.K. Lines' earnings potential next year. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at JP¥5,580, 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. At Simply Wall St, we have a full range of analyst estimates for Mitsui O.S.K. Lines going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Mitsui O.S.K. Lines (1 makes us a bit uncomfortable!) that we have uncovered.

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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.