Analysts Are Updating Their LINTEC Corporation (TSE:7966) Estimates After Its Interim Results
Shareholders of LINTEC Corporation (TSE:7966) will be pleased this week, given that the stock price is up 12% to JP¥5,430 following its latest interim results. Results overall were respectable, with statutory earnings of JP¥264 per share roughly in line with what the analysts had forecast. Revenues of JP¥173b came in 2.2% ahead of analyst predictions. 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 most recent consensus for LINTEC from five analysts is for revenues of JP¥348.1b in 2027. If met, it would imply a credible 3.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 21% to JP¥379. Before this earnings report, the analysts had been forecasting revenues of JP¥346.5b and earnings per share (EPS) of JP¥347 in 2027. So the consensus seems to have become somewhat more optimistic on LINTEC's earnings potential following these results.
View our latest analysis for LINTEC
There's been no major changes to the consensus price target of JP¥6,363, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic LINTEC analyst has a price target of JP¥8,500 per share, while the most pessimistic values it at JP¥4,950. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that LINTEC's rate of growth is expected to accelerate meaningfully, with the forecast 6.6% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 5.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that LINTEC is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around LINTEC's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 LINTEC analysts - going out to 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for LINTEC you should know about.
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