Analyst Estimates: Here's What Brokers Think Of TV TOKYO Holdings Corporation (TSE:9413) After Its First-Quarter Report
Last week saw the newest quarterly earnings release from TV TOKYO Holdings Corporation (TSE:9413), an important milestone in the company's journey to build a stronger business. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥38b, statutory earnings were in line with expectations, at JP¥289 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following last week's earnings report, TV TOKYO Holdings' four analysts are forecasting 2027 revenues to be JP¥165.1b, approximately in line with the last 12 months. Per-share earnings are expected to swell 12% to JP¥282. Before this earnings report, the analysts had been forecasting revenues of JP¥165.0b and earnings per share (EPS) of JP¥284 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 TV TOKYO Holdings
There were no changes to revenue or earnings estimates or the price target of JP¥4,223, suggesting that the company has met expectations in its recent result. 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 TV TOKYO Holdings, with the most bullish analyst valuing it at JP¥4,850 and the most bearish at JP¥3,800 per share. This is a very narrow spread of estimates, implying either that TV TOKYO Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. It's pretty clear that there is an expectation that TV TOKYO Holdings' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 2.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that TV TOKYO Holdings 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. The consensus price target held steady at JP¥4,223, 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 TV TOKYO Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple TV TOKYO Holdings analysts - going out to 2029, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.