The Yokogawa Bridge Holdings Corp. (TSE:5911) Interim Results Are Out And Analysts Have Published New Forecasts
Shareholders might have noticed that Yokogawa Bridge Holdings Corp. (TSE:5911) filed its interim result this time last week. The early response was not positive, with shares down 4.7% to JP¥2,770 in the past week. Results overall were respectable, with statutory earnings of JP¥218 per share roughly in line with what the analysts had forecast. Revenues of JP¥87b came in 2.6% ahead of analyst predictions. 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 current consensus from Yokogawa Bridge Holdings' two analysts is for revenues of JP¥186.7b in 2027. This would reflect a solid 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 7.1% to JP¥218. In the lead-up to this report, the analysts had been modelling revenues of JP¥188.4b and earnings per share (EPS) of JP¥221 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Yokogawa Bridge Holdings
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,650.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Yokogawa Bridge Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 1.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Yokogawa Bridge Holdings to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 Yokogawa Bridge Holdings. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Yokogawa Bridge Holdings going out as far as 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Yokogawa Bridge Holdings you should know about.
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