Earnings Beat: SHIMAMURA Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

It's been a good week for SHIMAMURA Co., Ltd. (TSE:8227) shareholders, because the company has just released its latest first-quarter results, and the shares gained 7.4% to JP¥10,500. Revenues were JP¥168b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥147 were also better than expected, beating analyst predictions by 10%. 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.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the most recent consensus for SHIMAMURA from twelve analysts is for revenues of JP¥689.5b in 2026. If met, it would imply a satisfactory 3.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 3.6% to JP¥596. Before this earnings report, the analysts had been forecasting revenues of JP¥690.4b and earnings per share (EPS) of JP¥593 in 2026. 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.

See our latest analysis for SHIMAMURA

The analysts reconfirmed their price target of JP¥9,818, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on SHIMAMURA, with the most bullish analyst valuing it at JP¥12,000 and the most bearish at JP¥8,300 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SHIMAMURA's past performance and to peers in the same industry. It's pretty clear that there is an expectation that SHIMAMURA's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.1% growth on an annualised basis. This is compared to a historical growth rate of 5.2% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that SHIMAMURA is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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. At Simply Wall St, we have a full range of analyst estimates for SHIMAMURA going out to 2028, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for SHIMAMURA that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.