Hakuhodo DY Holdings Inc (TSE:2433) Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?
Hakuhodo DY Holdings Inc (TSE:2433) last week reported its latest half-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues came in 4.4% below expectations, at JP¥200b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥46.09 being roughly in line with analyst estimates. 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.
Taking into account the latest results, the most recent consensus for Hakuhodo DY Holdings from six analysts is for revenues of JP¥925.7b in 2027. If met, it would imply a satisfactory 6.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 50% to JP¥70.51. Before this earnings report, the analysts had been forecasting revenues of JP¥919.5b and earnings per share (EPS) of JP¥70.90 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.
View our latest analysis for Hakuhodo DY Holdings
There were no changes to revenue or earnings estimates or the price target of JP¥1,236, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Hakuhodo DY Holdings at JP¥1,400 per share, while the most bearish prices it at JP¥1,000. 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.
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. For example, we noticed that Hakuhodo DY Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 13% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 2.8% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.1% annually. Not only are Hakuhodo DY Holdings' revenues expected to improve, it seems that the analysts are also expecting it 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. The consensus price target held steady at JP¥1,236, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Hakuhodo DY Holdings going out to 2029, and you can see them free on our platform here..
You can also see our analysis of Hakuhodo DY Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.