Earnings Update: Kobe Bussan Co., Ltd. (TSE:3038) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts
As you might know, Kobe Bussan Co., Ltd. (TSE:3038) recently reported its third-quarter numbers. Results were roughly in line with estimates, with revenues of JP¥147b and statutory earnings per share of JP¥144. 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. 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 most recent consensus for Kobe Bussan from ten analysts is for revenues of JP¥652.8b in 2027. If met, it would imply a notable 14% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 16% to JP¥151. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥647.9b and earnings per share (EPS) of JP¥153 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 Kobe Bussan
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,345. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Kobe Bussan, with the most bullish analyst valuing it at JP¥4,900 and the most bearish at JP¥2,750 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.6% annually. So it's pretty clear that Kobe Bussan is forecast to grow substantially faster than its industry.
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. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Kobe Bussan analysts - going out to 2028, and you can see them free on our platform here.
You can also see our analysis of Kobe Bussan's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.