TOPPAN Holdings Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
A week ago, TOPPAN Holdings Inc. (TSE:7911) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of JP¥457b, some 3.0% above estimates, and statutory earnings per share (EPS) coming in at JP¥76.89, 65% ahead of expectations. 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.
Taking into account the latest results, the consensus forecast from TOPPAN Holdings' five analysts is for revenues of JP¥1.91t in 2027. This reflects an okay 2.4% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥272, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.90t and earnings per share (EPS) of JP¥246 in 2027. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.
Check out our latest analysis for TOPPAN Holdings
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.4% to JP¥6,270. 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. There are some variant perceptions on TOPPAN Holdings, with the most bullish analyst valuing it at JP¥6,500 and the most bearish at JP¥6,000 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of TOPPAN Holdings'historical trends, as the 3.2% annualised revenue growth to the end of 2027 is roughly in line with the 3.7% 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 4.3% per year. So although TOPPAN Holdings is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around TOPPAN Holdings' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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. We have estimates - from multiple TOPPAN Holdings analysts - going out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for TOPPAN Holdings (1 is potentially serious!) that you need to take into consideration.
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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.