Asahi Intecc Co., Ltd. (TSE:7747) Yearly Results: Here's What Analysts Are Forecasting For This Year
Investors in Asahi Intecc Co., Ltd. (TSE:7747) had a good week, as its shares rose 5.2% to close at JP¥4,100 following the release of its yearly results. Results were roughly in line with estimates, with revenues of JP¥145b and statutory earnings per share of JP¥121. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Asahi Intecc from twelve analysts is for revenues of JP¥159.0b in 2027. If met, it would imply a notable 9.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 14% to JP¥138. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥157.1b and earnings per share (EPS) of JP¥133 in 2027. So the consensus seems to have become somewhat more optimistic on Asahi Intecc's earnings potential following these results.
See our latest analysis for Asahi Intecc
There's been no major changes to the consensus price target of JP¥4,327, 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. There are some variant perceptions on Asahi Intecc, with the most bullish analyst valuing it at JP¥5,000 and the most bearish at JP¥2,700 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. We would highlight that Asahi Intecc's revenue growth is expected to slow, with the forecast 9.4% annualised growth rate until the end of 2027 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.4% per year. Even after the forecast slowdown in growth, it seems obvious that Asahi Intecc is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Asahi Intecc following these results. 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¥4,327, 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. At Simply Wall St, we have a full range of analyst estimates for Asahi Intecc going out to 2029, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.