Here's What Analysts Are Forecasting For Credit Saison Co., Ltd. (TSE:8253) After Its First-Quarter Results
Credit Saison Co., Ltd. (TSE:8253) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of JP¥122b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥151, missing estimates by 3.3%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Credit Saison after the latest results.
After the latest results, the consensus from Credit Saison's six analysts is for revenues of JP¥506.8b in 2027, which would reflect a not inconsiderable 8.2% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to ascend 15% to JP¥545. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥506.5b and earnings per share (EPS) of JP¥541 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.
See our latest analysis for Credit Saison
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,260. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Credit Saison analyst has a price target of JP¥5,800 per share, while the most pessimistic values it at JP¥4,600. 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 would highlight that revenue is expected to reverse, with a forecast 11% annualised decline to the end of 2027. That is a notable change from historical growth of 10% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Credit Saison is expected to lag the wider 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. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Credit Saison. Long-term earnings power is much more important than next year's profits. We have forecasts for Credit Saison going out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Credit Saison (1 shouldn't be ignored!) that we have uncovered.
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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.