Here's What Analysts Are Forecasting For Persol Holdings Co.,Ltd. (TSE:2181) After Its Half-Yearly Results

Persol Holdings Co.,Ltd. (TSE:2181) shareholders are probably feeling a little disappointed, since its shares fell 5.1% to JP¥241 in the week after its latest interim results. It was a credible result overall, with revenues of JP¥718b and statutory earnings per share of JP¥13.22 both in line with analyst estimates, showing that Persol HoldingsLtd is executing in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Persol HoldingsLtd

After the latest results, the six analysts covering Persol HoldingsLtd are now predicting revenues of JP¥1.43t in 2025. If met, this would reflect a credible 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.2% to JP¥16.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.42t and earnings per share (EPS) of JP¥16.10 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥291, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Persol HoldingsLtd at JP¥390 per share, while the most bearish prices it at JP¥236. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 Persol HoldingsLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 8.8% over the past five years. Compare this to the 139 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.0% per year. Factoring in the forecast slowdown in growth, it looks like Persol HoldingsLtd is forecast to grow at about the same rate as the wider industry.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥291, with the latest estimates not enough to have an impact on their price targets.

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

Even so, be aware that Persol HoldingsLtd 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.