ZENKOKU HOSHO Co.,Ltd. (TSE:7164) Just Released Its Interim Earnings: Here's What Analysts Think
It's been a good week for ZENKOKU HOSHO Co.,Ltd. (TSE:7164) shareholders, because the company has just released its latest half-year results, and the shares gained 3.3% to JP¥3,191. It was a credible result overall, with revenues of JP¥24b and statutory earnings per share of JP¥244 both in line with analyst estimates, showing that ZENKOKU HOSHOLtd is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 current consensus from ZENKOKU HOSHOLtd's six analysts is for revenues of JP¥60.8b in 2027. This would reflect a satisfactory 2.3% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be JP¥254, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥60.7b and earnings per share (EPS) of JP¥253 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.
View our latest analysis for ZENKOKU HOSHOLtd
There were no changes to revenue or earnings estimates or the price target of JP¥3,680, 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. Currently, the most bullish analyst values ZENKOKU HOSHOLtd at JP¥4,700 per share, while the most bearish prices it at JP¥3,200. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that ZENKOKU HOSHOLtd's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 6.1% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.8% annually. Even after the forecast slowdown in growth, it seems obvious that ZENKOKU HOSHOLtd is also expected to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still 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.
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. At Simply Wall St, we have a full range of analyst estimates for ZENKOKU HOSHOLtd going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for ZENKOKU HOSHOLtd that you need to take into consideration.
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