Okinawa Cellular Telephone Company (TSE:9436) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in Okinawa Cellular Telephone Company (TSE:9436) had a good week, as its shares rose 3.3% to close at JP¥3,240 following the release of its third-quarter results. Results were roughly in line with estimates, with revenues of JP¥22b and statutory earnings per share of JP¥130. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Okinawa Cellular Telephone’s three analysts is for revenues of JP¥90.3b in 2027. This would reflect an okay 4.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 3.7% to JP¥145. In the lead-up to this report, the analysts had been modelling revenues of JP¥89.8b and earnings per share (EPS) of JP¥145 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.

Check out our latest analysis for Okinawa Cellular Telephone

There were no changes to revenue or earnings estimates or the price target of JP¥2,710, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. There are some variant perceptions on Okinawa Cellular Telephone, with the most bullish analyst valuing it at JP¥2,784 and the most bearish at JP¥2,635 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Okinawa Cellular Telephone’shistorical trends, as the 3.7% annualised revenue growth to the end of 2027 is roughly in line with the 3.4% 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 4.8% per year. So although Okinawa Cellular Telephone is expected to maintain its revenue growth rate, it’s forecast 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that Okinawa Cellular Telephone’s revenue is expected to perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Okinawa Cellular Telephone going out to 2028, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.