ZENKOKU HOSHO Co.,Ltd. (TSE:7164) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a credible result overall, with revenues of JP¥12b and statutory earnings per share of JP¥244 both in line with analyst estimates, showing that ZENKOKU HOSHOLtd is executing in line with expectations. 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.
Taking into account the latest results, the current consensus from ZENKOKU HOSHOLtd's six analysts is for revenues of JP¥60.8b in 2027. This would reflect a reasonable 3.0% increase on its revenue over the past 12 months. Statutory per share are forecast to be JP¥252, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥60.9b and earnings per share (EPS) of JP¥251 in 2027. 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.
Check out our latest analysis for ZENKOKU HOSHOLtd
There were no changes to revenue or earnings estimates or the price target of JP¥3,660, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on ZENKOKU HOSHOLtd, with the most bullish analyst valuing it at JP¥4,700 and the most bearish at JP¥3,000 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that ZENKOKU HOSHOLtd's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 4.0% growth on an annualised basis. This is compared to a historical growth rate of 6.2% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.0% per year. Even after the forecast slowdown in growth, it seems obvious that ZENKOKU HOSHOLtd is also expected to grow faster than the wider industry.
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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.
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 ZENKOKU HOSHOLtd analysts - going out to 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for ZENKOKU HOSHOLtd that you should be aware of.
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