Analyst Estimates: Here's What Brokers Think Of JINS HOLDINGS Inc. (TSE:3046) After Its Third-Quarter Report
One of the biggest stories of last week was how JINS HOLDINGS Inc. (TSE:3046) shares plunged 28% in the week since its latest quarterly results, closing yesterday at JP¥6,030. It was a workmanlike result, with revenues of JP¥30b coming in 3.6% ahead of expectations, and statutory earnings per share of JP¥122, in line with analyst appraisals. 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.
Following the latest results, JINS HOLDINGS' nine analysts are now forecasting revenues of JP¥123.7b in 2027. This would be a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 19% to JP¥421. In the lead-up to this report, the analysts had been modelling revenues of JP¥123.5b and earnings per share (EPS) of JP¥426 in 2027. 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.
Check out our latest analysis for JINS HOLDINGS
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥8,500. 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. Currently, the most bullish analyst values JINS HOLDINGS at JP¥10,000 per share, while the most bearish prices it at JP¥6,000. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of JINS HOLDINGS'historical trends, as the 11% annualised revenue growth to the end of 2027 is roughly in line with the 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.8% per year. So it's pretty clear that JINS HOLDINGS is forecast to grow substantially faster than its 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. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on JINS HOLDINGS. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for JINS HOLDINGS going out to 2028, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for JINS HOLDINGS you should know about.
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.