There's been a notable change in appetite for GOLDCREST Co.,Ltd. (TSE:8871) shares in the week since its half-yearly report, with the stock down 14% to JP¥2,496. Revenues of JP¥22b reported a marginal miss, falling short of forecasts by 6.1%, but earnings were better than expected - statutory profits came in at JP¥5.43 per share, a nice change from the loss the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the dual analysts covering GOLDCRESTLtd are now predicting revenues of JP¥42.9b in 2027. If met, this would reflect a meaningful 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 24% to JP¥312. In the lead-up to this report, the analysts had been modelling revenues of JP¥42.9b and earnings per share (EPS) of JP¥302 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for GOLDCRESTLtd
The consensus price target was unchanged at JP¥3,845, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that GOLDCRESTLtd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 41% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 0.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.7% annually. Not only are GOLDCRESTLtd's revenues expected to improve, it seems that the analysts are also expecting it 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 GOLDCRESTLtd's earnings potential next year. 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 analyst estimates for GOLDCRESTLtd going out as far as 2029, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with GOLDCRESTLtd (at least 2 which are potentially serious) , and understanding them should be part of your investment process.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.