Mie Kotsu Group Holdings, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Last week saw the newest interim earnings release from Mie Kotsu Group Holdings, Inc. (TSE:3232), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of JP¥26b were what the analyst expected, Mie Kotsu Group Holdings surprised by delivering a (statutory) profit of JP¥19.93 per share, an impressive 181% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Mie Kotsu Group Holdings after the latest results.

Check out our latest analysis for Mie Kotsu Group Holdings

Taking into account the latest results, the current consensus, from the sole analyst covering Mie Kotsu Group Holdings, is for revenues of JP¥103.1b in 2025. This implies a small 2.3% reduction in Mie Kotsu Group Holdings' revenue over the past 12 months. Statutory earnings per share are expected to decline 15% to JP¥51.90 in the same period. Before this earnings report, the analyst had been forecasting revenues of JP¥104.6b and earnings per share (EPS) of JP¥48.00 in 2025. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target fell 9.2% to JP¥590, suggesting the increase in earnings forecasts was not enough to offset other the analyst concerns.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.6% by the end of 2025. This indicates a significant reduction from annual growth of 0.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Mie Kotsu Group Holdings is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mie Kotsu Group Holdings' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Mie Kotsu Group Holdings' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Mie Kotsu Group Holdings. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Mie Kotsu Group Holdings going out as far as 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Mie Kotsu Group Holdings (of which 2 are a bit unpleasant!) you should know about.

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.