Analyst Estimates: Here's What Brokers Think Of Acom Co., Ltd. (TSE:8572) After Its First-Quarter Report

The first-quarter results for Acom Co., Ltd. (TSE:8572) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of JP¥89b and statutory earnings per share of JP¥50.83. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the consensus forecast from Acom's four analysts is for revenues of JP¥359.0b in 2027. This reflects a credible 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 5.5% to JP¥43.56. In the lead-up to this report, the analysts had been modelling revenues of JP¥357.8b and earnings per share (EPS) of JP¥42.85 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 Acom

There were no changes to revenue or earnings estimates or the price target of JP¥491, 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. The most optimistic Acom analyst has a price target of JP¥500 per share, while the most pessimistic values it at JP¥485. This is a very narrow spread of estimates, implying either that Acom is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 5.8% growth on an annualised basis. That is in line with its 6.1% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.1% per year. So although Acom is expected to maintain its revenue growth rate, it's only growing at about the rate of 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. 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 in mind, we wouldn't be too quick to come to a conclusion on Acom. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Acom going out to 2029, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Acom (1 is concerning!) that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.