Results: Pacific Industrial Co., Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Pacific Industrial Co., Ltd. (TSE:7250) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 4.6% to hit JP¥52b. Pacific Industrial also reported a statutory profit of JP¥83.73, which was an impressive 83% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Pacific Industrial

Taking into account the latest results, the current consensus from Pacific Industrial's five analysts is for revenues of JP¥208.6b in 2026. This would reflect a credible 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to nosedive 31% to JP¥197 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥206.7b and earnings per share (EPS) of JP¥190 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥1,593, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Pacific Industrial at JP¥1,900 per share, while the most bearish prices it at JP¥1,420. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 Pacific Industrial's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2026 being well below the historical 7.2% 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 3.5% 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 Pacific Industrial.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Pacific Industrial following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Pacific Industrial's 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.

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. At Simply Wall St, we have a full range of analyst estimates for Pacific Industrial going out to 2027, 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 3 warning signs for Pacific Industrial (1 shouldn't be ignored!) that you need to be mindful 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.