Earnings Update: Greens Co.,Ltd. (TSE:6547) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts
Greens Co.,Ltd. (TSE:6547) shareholders are probably feeling a little disappointed, since its shares fell 9.4% to JP¥2,005 in the week after its latest yearly results. The result was positive overall - although revenues of JP¥54b were in line with what the analysts predicted, GreensLtd surprised by delivering a statutory profit of JP¥358 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from GreensLtd's dual analysts is for revenues of JP¥57.0b in 2027. This reflects a reasonable 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 5.9% to JP¥342 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥58.8b and earnings per share (EPS) of JP¥368 in 2027. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
See our latest analysis for GreensLtd
The analysts made no major changes to their price target of JP¥3,800, suggesting the downgrades are not expected to have a long-term impact on GreensLtd's valuation.
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 GreensLtd's revenue growth is expected to slow, with the forecast 5.6% annualised growth rate until the end of 2027 being well below the historical 21% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that GreensLtd is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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 GreensLtd. Long-term earnings power is much more important than next year's profits. We have analyst estimates for GreensLtd going out as far as 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - GreensLtd has 1 warning sign we think you should be aware of.
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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.