Results: Tsuruha Holdings Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
Investors in Tsuruha Holdings Inc. (TSE:3391) had a good week, as its shares rose 5.8% to close at JP¥2,257 following the release of its first-quarter results. It looks like a credible result overall - although revenues of JP¥637b were what the analysts expected, Tsuruha Holdings surprised by delivering a (statutory) profit of JP¥29.75 per share, an impressive 20% above what was forecast. 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. 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 Tsuruha Holdings from eight analysts is for revenues of JP¥2.55t in 2027. If met, it would imply a major 41% increase on its revenue over the past 12 months. Statutory per share are forecast to be JP¥98.85, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥2.55t and earnings per share (EPS) of JP¥96.86 in 2027. So the consensus seems to have become somewhat more optimistic on Tsuruha Holdings' earnings potential following these results.
Check out our latest analysis for Tsuruha Holdings
The consensus price target was unchanged at JP¥2,541, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Tsuruha Holdings analyst has a price target of JP¥3,000 per share, while the most pessimistic values it at JP¥2,200. 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 Tsuruha Holdings shareholders.
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. It's clear from the latest estimates that Tsuruha Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 57% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 11% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tsuruha Holdings 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 Tsuruha Holdings 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¥2,541, 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 Tsuruha Holdings going out to 2029, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Tsuruha Holdings .
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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.