MITSUI E&S Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
MITSUI E&S Co., Ltd. (TSE:7003) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 3.9% to hit JP¥92b. Statutory earnings per share (EPS) came in at JP¥80.87, some 7.8% above whatthe analysts had expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, MITSUI E&S' four analysts are now forecasting revenues of JP¥377.6b in 2027. This would be a satisfactory 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to shrink 7.9% to JP¥360 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥376.7b and earnings per share (EPS) of JP¥357 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.
See our latest analysis for MITSUI E&S
There were no changes to revenue or earnings estimates or the price target of JP¥7,400, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values MITSUI E&S at JP¥8,300 per share, while the most bearish prices it at JP¥6,600. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. For example, we noticed that MITSUI E&S' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.1% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 15% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.4% annually for the foreseeable future. Although MITSUI E&S' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥7,400, 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 forecasts for MITSUI E&S 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 MITSUI E&S .
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.