Namura Shipbuilding Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Namura Shipbuilding Co., Ltd. (TSE:7014) just released its first-quarter report and things are looking bullish. Namura Shipbuilding delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting JP¥44b-11% above indicated-andJP¥106-46% above forecasts- respectively 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Namura Shipbuilding after the latest results.
Following the latest results, Namura Shipbuilding's dual analysts are now forecasting revenues of JP¥173.1b in 2027. This would be a credible 4.2% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥357, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥173.0b and earnings per share (EPS) of JP¥335 in 2027. So the consensus seems to have become somewhat more optimistic on Namura Shipbuilding's earnings potential following these results.
Check out our latest analysis for Namura Shipbuilding
There's been no major changes to the consensus price target of JP¥5,750, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Namura Shipbuilding's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 5.6% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.3% annually. Factoring in the forecast slowdown in growth, it looks like Namura Shipbuilding is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Namura Shipbuilding's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥5,750, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2029, which can be seen for free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Namura Shipbuilding that you need to be mindful of.
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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.