Pacific Industrial Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week saw the newest interim earnings release from Pacific Industrial Co., Ltd. (TSE:7250), an important milestone in the company's journey to build a stronger business. It looks like a pretty bad result, all things considered. Although revenues of JP¥48b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 37% to hit JP¥19.23 per share. 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.

View our latest analysis for Pacific Industrial

Following last week's earnings report, Pacific Industrial's five analysts are forecasting 2025 revenues to be JP¥201.0b, approximately in line with the last 12 months. Statutory earnings per share are forecast to tumble 29% to JP¥182 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥201.7b and earnings per share (EPS) of JP¥185 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of JP¥1,595, 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. Currently, the most bullish analyst values Pacific Industrial at JP¥1,900 per share, while the most bearish prices it at JP¥1,400. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 3.2% annualised decline to the end of 2025. That is a notable change from historical growth of 6.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.3% annually for the foreseeable future. It's pretty clear that Pacific Industrial's revenues are expected to perform substantially worse 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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Pacific Industrial analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Pacific Industrial (1 makes us a bit uncomfortable!) that you need to take into consideration.

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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.