Here's What Analysts Are Forecasting For TBS Holdings,Inc. (TSE:9401) After Its First-Quarter Results
Shareholders might have noticed that TBS Holdings,Inc. (TSE:9401) filed its quarterly result this time last week. The early response was not positive, with shares down 3.3% to JP¥5,833 in the past week. Results overall were respectable, with statutory earnings of JP¥331 per share roughly in line with what the analysts had forecast. Revenues of JP¥105b came in 3.5% ahead of analyst predictions. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, TBS HoldingsInc's six analysts are now forecasting revenues of JP¥439.6b in 2027. This would be a credible 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 2.4% to JP¥310 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥435.1b and earnings per share (EPS) of JP¥337 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
View our latest analysis for TBS HoldingsInc
The consensus price target held steady at JP¥6,347, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on TBS HoldingsInc, with the most bullish analyst valuing it at JP¥7,600 and the most bearish at JP¥5,300 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 would highlight that TBS HoldingsInc's revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2027 being well below the historical 4.5% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than TBS HoldingsInc.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for TBS HoldingsInc. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that TBS HoldingsInc's revenue is expected to perform worse 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 TBS HoldingsInc. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple TBS HoldingsInc analysts - going out to 2029, 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 TBS HoldingsInc 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.