Here's What Analysts Are Forecasting For Tri Chemical Laboratories Inc. (TSE:4369) After Its Interim Results
Shareholders might have noticed that Tri Chemical Laboratories Inc. (TSE:4369) filed its interim result this time last week. The early response was not positive, with shares down 5.3% to JP¥3,020 in the past week. It was a workmanlike result, with revenues of JP¥15b coming in 2.5% ahead of expectations, and statutory earnings per share of JP¥170, in line with analyst appraisals. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Tri Chemical Laboratories' six analysts are now forecasting revenues of JP¥29.5b in 2027. This would be a decent 12% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥187, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥29.4b and earnings per share (EPS) of JP¥186 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.
Check out our latest analysis for Tri Chemical Laboratories
The analysts reconfirmed their price target of JP¥4,173, showing that the business is executing well and in line with expectations. 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. The most optimistic Tri Chemical Laboratories analyst has a price target of JP¥4,700 per share, while the most pessimistic values it at JP¥3,800. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Tri Chemical Laboratories' growth to accelerate, with the forecast 26% annualised growth to the end of 2027 ranking favourably alongside historical growth of 19% per annum 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 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Tri Chemical Laboratories 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥4,173, 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 estimates - from multiple Tri Chemical Laboratories analysts - going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Tri Chemical Laboratories has 1 warning sign we think 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.