Mie Kotsu Group Holdings, Inc. Just Missed EPS By 6.8%: Here's What Analysts Think Will Happen Next

As you might know, Mie Kotsu Group Holdings, Inc. (TSE:3232) last week released its latest annual, and things did not turn out so great for shareholders. Mie Kotsu Group Holdings missed analyst forecasts, with revenues of JP¥98b and statutory earnings per share (EPS) of JP¥47.52, falling short by 2.1% and 6.8% respectively. 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for Mie Kotsu Group Holdings

After the latest results, the lone analyst covering Mie Kotsu Group Holdings are now predicting revenues of JP¥104.6b in 2025. If met, this would reflect a modest 6.5% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥48.00, roughly flat on the last 12 months. Before this earnings report, the analyst had been forecasting revenues of JP¥105.9b and earnings per share (EPS) of JP¥55.00 in 2025. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at JP¥650, with the analyst seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. For example, we noticed that Mie Kotsu Group Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.5% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 2.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.6% per year. So it looks like Mie Kotsu Group Holdings is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Mie Kotsu Group Holdings. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Mie Kotsu Group Holdings you should be aware of, and 1 of them is potentially serious.

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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.