TRE Holdings Corporation (TSE:9247) Analysts Are Pretty Bullish On The Stock After Recent Results
It's been a good week for TRE Holdings Corporation (TSE:9247) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.1% to JP¥2,018. It was a workmanlike result, with revenues of JP¥27b coming in 4.2% ahead of expectations, and statutory earnings per share of JP¥305, in line with analyst appraisals. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the recent earnings report, the consensus from four analysts covering TRE Holdings is for revenues of JP¥107.4b in 2027. This implies a perceptible 5.9% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to crater 54% to JP¥106 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥106.4b and earnings per share (EPS) of JP¥121 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.
See our latest analysis for TRE Holdings
Despite cutting their earnings forecasts,the analysts have lifted their price target 10% to JP¥2,375, suggesting that these impacts are not expected to weigh on the stock's value in the long term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values TRE Holdings at JP¥2,500 per share, while the most bearish prices it at JP¥2,250. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. We would highlight that revenue is expected to reverse, with a forecast 7.8% annualised decline to the end of 2027. That is a notable change from historical growth of 12% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.3% annually for the foreseeable future. It's pretty clear that TRE 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 TRE Holdings. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that TRE Holdings' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for TRE Holdings going out to 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for TRE Holdings (1 doesn't sit too well with us!) that 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.