EXEO Group, Inc. Just Recorded A 8.6% EPS Beat: Here's What Analysts Are Forecasting Next

A week ago, EXEO Group, Inc. (TSE:1951) came out with a strong set of full-year numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of JP¥671b arriving 3.2% ahead of forecasts. Statutory earnings per share (EPS) were JP¥129, 8.6% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in EXEO Group. Read for free now.

Taking into account the latest results, EXEO Group's five analysts currently expect revenues in 2026 to be JP¥673.7b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be JP¥130, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥668.7b and earnings per share (EPS) of JP¥127 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for EXEO Group

The consensus price target was unchanged at JP¥1,925, 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. The most optimistic EXEO Group analyst has a price target of JP¥2,400 per share, while the most pessimistic values it at JP¥1,700. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await EXEO Group shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that EXEO Group's revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2026 being well below the historical 3.7% 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 2.2% 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 EXEO Group.

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 EXEO Group 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 EXEO Group'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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for EXEO Group going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for EXEO Group that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.