METAWATER Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in METAWATER Co., Ltd. (TSE:9551) had a good week, as its shares rose 2.4% to close at JP¥1,871 following the release of its quarterly results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at JP¥39b, statutory earnings beat expectations by a notable 122%, coming in at JP¥34.58 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on METAWATER after the latest results.

Check out our latest analysis for METAWATER

Following the latest results, METAWATER's four analysts are now forecasting revenues of JP¥180.9b in 2026. This would be a reasonable 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 9.2% to JP¥158. In the lead-up to this report, the analysts had been modelling revenues of JP¥178.7b and earnings per share (EPS) of JP¥158 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target fell 16% to JP¥2,000, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results.

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. It's pretty clear that there is an expectation that METAWATER's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.5% growth on an annualised basis. This is compared to a historical growth rate of 6.8% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that METAWATER is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for METAWATER going out to 2027, and you can see them free on our platform here..

Even so, be aware that METAWATER is showing 1 warning sign in our investment analysis , you should know about...

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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.