PIA Corporation (TSE:4337) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.
Following the upgrade, the current consensus from PIA's one analyst is for revenues of JP¥59b in 2027 which - if met - would reflect an okay 5.0% increase on its sales over the past 12 months. Statutory earnings per share are supposed to sink 19% to JP¥122 in the same period. Prior to this update, the analyst had been forecasting revenues of JP¥53b and earnings per share (EPS) of JP¥119 in 2027. The most recent forecasts are noticeably more optimistic, with a nice increase in revenue estimates and a lift to earnings per share as well.
Check out our latest analysis for PIA
Although the analyst has upgraded their earnings estimates, there was no change to the consensus price target of JP¥3,710, suggesting that the forecast performance does not have a long term impact on the company's valuation.
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. The analyst is definitely expecting PIA's growth to accelerate, with the forecast 6.8% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that PIA is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue forecasts, although the latest estimates suggest that PIA will grow in line with the overall market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at PIA.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for PIA going out as far as 2029, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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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.