Mie Kotsu Group Holdings, Inc. Just Recorded A 62% EPS Beat: Here's What Analysts Are Forecasting Next
As you might know, Mie Kotsu Group Holdings, Inc. (TSE:3232) recently reported its first-quarter numbers. It looks like a credible result overall - although revenues of JP¥26b were what the analysts expected, Mie Kotsu Group Holdings surprised by delivering a (statutory) profit of JP¥22.47 per share, an impressive 62% above what was forecast. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, Mie Kotsu Group Holdings' two analysts currently expect revenues in 2027 to be JP¥111.1b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 6.8% to JP¥59.70 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥111.3b and earnings per share (EPS) of JP¥64.45 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
Check out our latest analysis for Mie Kotsu Group Holdings
It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥565, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.9% by the end of 2027. This indicates a significant reduction from annual growth of 6.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.8% per year. It's pretty clear that Mie Kotsu Group Holdings' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Mie Kotsu Group Holdings. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Mie Kotsu Group Holdings' 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. We have analyst estimates for Mie Kotsu Group Holdings going out as far as 2029, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Mie Kotsu Group Holdings (at least 1 which can't be ignored) , and understanding these should be part of your investment process.
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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.