Analysts Have Made A Financial Statement On Tokyu Corporation's (TSE:9005) First-Quarter Report
Tokyu Corporation (TSE:9005) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Tokyu reported in line with analyst predictions, delivering revenues of JP¥273b and statutory earnings per share of JP¥152, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tokyu after the latest results.
Taking into account the latest results, the consensus forecast from Tokyu's eight analysts is for revenues of JP¥1.14t in 2027. This reflects a modest 3.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 7.5% to JP¥161 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥1.14t and earnings per share (EPS) of JP¥161 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.
See our latest analysis for Tokyu
There were no changes to revenue or earnings estimates or the price target of JP¥2,070, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Tokyu analyst has a price target of JP¥2,510 per share, while the most pessimistic values it at JP¥1,780. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tokyu's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 4.5% growth on an annualised basis. That is in line with its 4.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.5% annually. So it's pretty clear that Tokyu is forecast to grow substantially 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¥2,070, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Tokyu. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Tokyu 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 2 warning signs for Tokyu (1 is significant) 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.