Food & Life Companies Ltd. (TSE:3563) just released its latest quarterly results and things are looking bullish. Food & Life Companies beat earnings, with revenues hitting JP¥136b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Food & Life Companies after the latest results.
Taking into account the latest results, the current consensus from Food & Life Companies' 13 analysts is for revenues of JP¥605.6b in 2027. This would reflect a decent 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 23% to JP¥170. In the lead-up to this report, the analysts had been modelling revenues of JP¥602.3b and earnings per share (EPS) of JP¥170 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Food & Life Companies
There were no changes to revenue or earnings estimates or the price target of JP¥6,337, suggesting that the company has met expectations in its recent result. 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 Food & Life Companies, with the most bullish analyst valuing it at JP¥7,500 and the most bearish at JP¥3,850 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Food & Life Companies' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Food & Life Companies'historical trends, as the 15% annualised revenue growth to the end of 2027 is roughly in line with the 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.2% annually. So it's pretty clear that Food & Life Companies is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.
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 Food & Life Companies going out to 2028, and you can see them free on our platform here..
You can also view our analysis of Food & Life Companies' balance sheet, and whether we think Food & Life Companies is carrying too much debt, for free on our platform here.
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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.