Shimizu Corporation (TSE:1803) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of JP¥1.1t, some 3.1% above estimates, and statutory earnings per share (EPS) coming in at JP¥77.83, 103% ahead of expectations. 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. 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 Shimizu's nine analysts is for revenues of JP¥2.30t in 2027. This would reflect a credible 3.5% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 8.7% to JP¥256 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥2.29t and earnings per share (EPS) of JP¥253 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.
See our latest analysis for Shimizu
There were no changes to revenue or earnings estimates or the price target of JP¥2,737, 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 Shimizu, with the most bullish analyst valuing it at JP¥3,400 and the most bearish at JP¥2,030 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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 period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 7.2% growth on an annualised basis. That is in line with its 6.9% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. So although Shimizu is expected to maintain its revenue growth rate, it's definitely 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. 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. The consensus price target held steady at JP¥2,737, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Shimizu. Long-term earnings power is much more important than next year's profits. We have forecasts for Shimizu going out to 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 3 warning signs for Shimizu (1 makes us a bit uncomfortable!) that you should be aware of.
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