Results: Visional, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
There's been a notable change in appetite for Visional, Inc. (TSE:4194) shares in the week since its annual report, with the stock down 12% to JP¥8,028. The result was positive overall - although revenues of JP¥99b were in line with what the analysts predicted, Visional surprised by delivering a statutory profit of JP¥461 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Visional from nine analysts is for revenues of JP¥117.4b in 2027. If met, it would imply a notable 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 7.1% to JP¥491. Before this earnings report, the analysts had been forecasting revenues of JP¥117.4b and earnings per share (EPS) of JP¥498 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 Visional
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥10,857. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Visional analyst has a price target of JP¥12,000 per share, while the most pessimistic values it at JP¥8,500. 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 Visional's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Visional'shistorical trends, as the 18% annualised revenue growth to the end of 2027 is roughly in line with the 21% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.0% per year. So it's pretty clear that Visional 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¥10,857, 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 Visional. 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 Visional going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Visional that you need to take into consideration.
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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.