Here's What Analysts Are Forecasting For Japan Exchange Group, Inc. (TSE:8697) After Its Third-Quarter Results
It's shaping up to be a tough period for Japan Exchange Group, Inc. (TSE:8697), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. Japan Exchange Group missed analyst forecasts, with revenues of JP¥50b and statutory earnings per share (EPS) of JP¥19.87, falling short by 2.1% and 2.4% 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. 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 current consensus from Japan Exchange Group's four analysts is for revenues of JP¥196.7b in 2027. This would reflect a credible 7.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 5.9% to JP¥71.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥196.3b and earnings per share (EPS) of JP¥70.66 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Japan Exchange Group
There were no changes to revenue or earnings estimates or the price target of JP¥1,756, suggesting that the company has met expectations in its recent result. 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 Japan Exchange Group at JP¥2,000 per share, while the most bearish prices it at JP¥1,500. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 can infer from the latest estimates that forecasts expect a continuation of Japan Exchange Group'shistorical trends, as the 6.3% annualised revenue growth to the end of 2027 is roughly in line with the 6.1% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.4% annually. So although Japan Exchange Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Japan Exchange Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Japan Exchange Group going out to 2028, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Japan Exchange Group that you should be aware 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.