The Hakuhodo DY Holdings Inc (TSE:2433) First-Quarter Results Are Out And Analysts Have Published New Forecasts
Hakuhodo DY Holdings Inc (TSE:2433) shareholders are probably feeling a little disappointed, since its shares fell 4.6% to JP¥1,242 in the week after its latest first-quarter results. Revenues came in 4.1% below expectations, at JP¥176b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥46.09 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Hakuhodo DY Holdings' six analysts is for revenues of JP¥921.3b in 2027. This reflects a reasonable 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 50% to JP¥70.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥923.0b and earnings per share (EPS) of JP¥70.66 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 Hakuhodo DY Holdings
There were no changes to revenue or earnings estimates or the price target of JP¥1,211, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Hakuhodo DY Holdings analyst has a price target of JP¥1,400 per share, while the most pessimistic values it at JP¥1,000. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 Hakuhodo DY Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 8.4% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 3.7% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.2% per year. So it looks like Hakuhodo DY Holdings is expected to grow faster than its competitors, at least for a while.
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. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Hakuhodo DY Holdings analysts - going out to 2029, and you can see them free on our platform here.
We also provide an overview of the Hakuhodo DY Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.