Open House Group Co., Ltd. (TSE:3288) Just Released Its Annual Results And Analysts Are Updating Their Estimates
Open House Group Co., Ltd. (TSE:3288) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to JP¥7,373 in the week after its latest annual results. It was a credible result overall, with revenues of JP¥1.5t and statutory earnings per share of JP¥1,071 both in line with analyst estimates, showing that Open House Group is executing in line with expectations. 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. 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 most recent consensus for Open House Group from seven analysts is for revenues of JP¥1.63t in 2027. If met, it would imply a notable 10% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 5.6% to JP¥1,143. Before this earnings report, the analysts had been forecasting revenues of JP¥1.63t and earnings per share (EPS) of JP¥1,137 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Open House Group
The analysts reconfirmed their price target of JP¥10,017, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Open House Group, with the most bullish analyst valuing it at JP¥12,800 and the most bearish at JP¥8,100 per share. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.4% annually. So although Open House Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥10,017, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Open House Group 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 Open House Group (1 is concerning!) that you need to take into consideration.
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