Last week, you might have seen that Canon Marketing Japan Inc. (TSE:8060) released its quarterly result to the market. The early response was not positive, with shares down 5.2% to JP¥4,425 in the past week. It was not a great result overall. While revenues of JP¥154b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 14% to hit JP¥56.32 per share. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Canon Marketing Japan
TSE:8060 Earnings and Revenue Growth October 25th 2024
Taking into account the latest results, the consensus forecast from Canon Marketing Japan’s dual analysts is for revenues of JP¥668.9b in 2025. This reflects a reasonable 4.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 11% to JP¥376. Before this earnings report, the analysts had been forecasting revenues of JP¥668.1b and earnings per share (EPS) of JP¥382 in 2025. 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.
With the analysts reconfirming their revenue and earnings forecasts, it’s surprising to see that the price target rose 7.2% to JP¥5,950. It looks as though they previously had some doubts over whether the business would live up to their expectations.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It’s clear from the latest estimates that Canon Marketing Japan’s rate of growth is expected to accelerate meaningfully, with the forecast 3.8% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 7.1% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Canon Marketing Japan is expected to grow slower 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn’t be too quick to come to a conclusion on Canon Marketing Japan. Long-term earnings power is much more important than next year’s profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
It is also worth noting that we have found 1 warning sign for Canon Marketing Japan 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.