Tokyu Corporation (TSE:9005) Interim Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, Tokyu Corporation (TSE:9005) recently reported its half-year numbers. Results were roughly in line with estimates, with revenues of JP¥540b and statutory earnings per share of JP¥152. 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.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following the latest results, Tokyu's eight analysts are now forecasting revenues of JP¥1.13t in 2027. This would be a satisfactory 2.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.8% to JP¥164. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.14t and earnings per share (EPS) of JP¥161 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Tokyu

There's been no major changes to the consensus price target of JP¥1,986, 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. Currently, the most bullish analyst values Tokyu at JP¥2,500 per share, while the most bearish prices it at JP¥1,780. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Tokyu'shistorical trends, as the 4.9% annualised revenue growth to the end of 2027 is roughly in line with the 4.8% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.6% per year. So it's pretty clear that Tokyu is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Tokyu's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tokyu going out to 2029, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Tokyu (including 1 which shouldn't be ignored) .

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