The Alsok Co.,Ltd. (TSE:2331) First-Quarter Results Are Out And Analysts Have Published New Forecasts
Shareholders might have noticed that Alsok Co.,Ltd. (TSE:2331) filed its quarterly result this time last week. The early response was not positive, with shares down 5.8% to JP¥1,138 in the past week. It was a credible result overall, with revenues of JP¥146b and statutory earnings per share of JP¥68.49 both in line with analyst estimates, showing that AlsokLtd is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, AlsokLtd's five analysts are now forecasting revenues of JP¥634.4b in 2027. This would be an okay 5.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 18% to JP¥84.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥633.7b and earnings per share (EPS) of JP¥84.23 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.
View our latest analysis for AlsokLtd
The analysts reconfirmed their price target of JP¥1,350, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values AlsokLtd at JP¥1,600 per share, while the most bearish prices it at JP¥1,200. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AlsokLtd's past performance and to peers in the same industry. It's clear from the latest estimates that AlsokLtd's rate of growth is expected to accelerate meaningfully, with the forecast 7.3% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 4.9% 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 4.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AlsokLtd is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥1,350, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for AlsokLtd going out to 2029, and you can see them free on our platform here.
You can also see our analysis of AlsokLtd's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.