Here's What Analysts Are Forecasting For Yamato Holdings Co., Ltd. (TSE:9064) After Its First-Quarter Results

It's been a mediocre week for Yamato Holdings Co., Ltd. (TSE:9064) shareholders, with the stock dropping 14% to JP¥1,880 in the week since its latest quarterly results. It was a respectable set of results; while revenues of JP¥443b were in line with analyst predictions, statutory losses were 12% smaller than expected, with Yamato Holdings losing JP¥18.59 per share. 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.

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Following the latest results, Yamato Holdings' eleven analysts are now forecasting revenues of JP¥1.92t in 2027. This would be a credible 2.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 23% to JP¥51.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.92t and earnings per share (EPS) of JP¥54.44 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

View our latest analysis for Yamato Holdings

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥1,788, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Yamato Holdings analyst has a price target of JP¥2,100 per share, while the most pessimistic values it at JP¥1,420. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Yamato Holdings shareholders.

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 analysts are definitely expecting Yamato Holdings' growth to accelerate, with the forecast 3.2% annualised growth to the end of 2027 ranking favourably alongside historical growth of 0.7% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 3.8% per year. Yamato Holdings is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥1,788, with the latest estimates not enough to have an impact on their price targets.

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 Yamato Holdings analysts - 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 3 warning signs for Yamato Holdings that we have uncovered.

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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.