KATITAS CO., Ltd. (TSE:8919) Half-Yearly Results: Here's What Analysts Are Forecasting For This Year
As you might know, KATITAS CO., Ltd. (TSE:8919) recently reported its interim numbers. Results overall were respectable, with statutory earnings of JP¥97.21 per share roughly in line with what the analysts had forecast. Revenues of JP¥90b came in 2.3% ahead of analyst predictions. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on KATITAS after the latest results.
Taking into account the latest results, the current consensus from KATITAS' eight analysts is for revenues of JP¥179.1b in 2027. This would reflect a reasonable 5.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 3.3% to JP¥186. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥178.5b and earnings per share (EPS) of JP¥185 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 KATITAS
There were no changes to revenue or earnings estimates or the price target of JP¥3,914, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on KATITAS, with the most bullish analyst valuing it at JP¥4,300 and the most bearish at JP¥3,250 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that KATITAS' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.3% p.a. 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 4.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that KATITAS is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥3,914, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on KATITAS. Long-term earnings power is much more important than next year's profits. We have forecasts for KATITAS going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with KATITAS (including 2 which are significant) .
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