Investors in Tri Chemical Laboratories Inc. (TSE:4369) had a good week, as its shares rose 8.1% to close at JP¥4,050 following the release of its quarterly results. Results overall were respectable, with statutory earnings of JP¥170 per share roughly in line with what the analysts had forecast. Revenues of JP¥7.5b came in 8.5% ahead of analyst predictions. 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. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Tri Chemical Laboratories’ five analysts is for revenues of JP¥28.8b in 2027. This reflects a notable 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 6.5% to JP¥177 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥27.7b and earnings per share (EPS) of JP¥155 in 2027. There’s been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.
Check out our latest analysis for Tri Chemical Laboratories
With these upgrades, we’re not surprised to see that the analysts have lifted their price target 8.2% to JP¥4,160per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Tri Chemical Laboratories, with the most bullish analyst valuing it at JP¥4,750 and the most bearish at JP¥3,800 per share. The narrow spread of estimates could suggest that the business’ future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. The analysts are definitely expecting Tri Chemical Laboratories’ growth to accelerate, with the forecast 22% annualised growth to the end of 2027 ranking favourably alongside historical growth of 19% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. Factoring in the forecast acceleration in revenue, it’s pretty clear that Tri Chemical Laboratories is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Tri Chemical Laboratories following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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 said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have forecasts for Tri Chemical Laboratories 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 Tri Chemical Laboratories (1 makes us a bit uncomfortable) 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.