MEITEC Group Holdings Inc. (TSE:9744) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Investors in MEITEC Group Holdings Inc. (TSE:9744) had a good week, as its shares rose 2.3% to close at JP¥3,339 following the release of its quarterly results. Revenues came in 4.5% below expectations, at JP¥35b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥195 being roughly in line with analyst estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from MEITEC Group Holdings' five analysts is for revenues of JP¥142.5b in 2027. This reflects a satisfactory 3.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 7.5% to JP¥183 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥142.7b and earnings per share (EPS) of JP¥182 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 MEITEC Group Holdings
The analysts reconfirmed their price target of JP¥3,300, showing that the business is executing well and in line with expectations. 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 MEITEC Group Holdings, with the most bullish analyst valuing it at JP¥3,400 and the most bearish at JP¥3,100 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company 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 would highlight that MEITEC Group Holdings' revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2027 being well below the historical 6.5% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than MEITEC Group Holdings.
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 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. We have estimates - from multiple MEITEC Group Holdings analysts - going out to 2029, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for MEITEC Group Holdings that you need to be mindful of.
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