West Holdings Third Quarter 2024 Earnings: Misses Expectations

West Holdings (TSE:1407) Third Quarter 2024 Results

Key Financial Results

• Revenue: JP¥9.79b (down 14% from 3Q 2023).
• Net income: JP¥731.0m (down 62% from 3Q 2023).
• Profit margin: 7.5% (down from 17% in 3Q 2023). The decrease in margin was driven by lower revenue.
• EPS: JP¥18.09 (down from JP¥47.34 in 3Q 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

West Holdings Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 40%. Earnings per share (EPS) also missed analyst estimates by 67%.

Looking ahead, revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Construction industry in Japan.

Performance of the Japanese Construction industry.

The company's shares are down 6.5% from a week ago.

Risk Analysis

It's necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with West Holdings (at least 1 which shouldn'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.

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