Earnings Miss: PARK24 Co., Ltd. Missed EPS By 5.1% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that PARK24 Co., Ltd. (TSE:4666) filed its third-quarter result this time last week. The early response was not positive, with shares down 2.1% to JP¥1,738 in the past week. It looks like the results were a bit of a negative overall. While revenues of JP¥94b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.1% to hit JP¥33.09 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are 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 estimates suggest is in store for next year.

See our latest analysis for PARK24

Taking into account the latest results, the current consensus from PARK24's seven analysts is for revenues of JP¥390.0b in 2025. This would reflect a solid 8.7% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 42% to JP¥141. Before this earnings report, the analysts had been forecasting revenues of JP¥388.9b and earnings per share (EPS) of JP¥141 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.

With no major changes to earnings forecasts, the consensus price target fell 6.0% to JP¥2,575, suggesting that the analysts might have previously been hoping for an earnings upgrade. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic PARK24 analyst has a price target of JP¥3,300 per share, while the most pessimistic values it at JP¥2,150. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that PARK24's rate of growth is expected to accelerate meaningfully, with the forecast 6.9% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect PARK24 to grow faster than 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 major changes to revenue forecasts, with the business still expected to grow faster 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 in mind, we wouldn't be too quick to come to a conclusion on PARK24. Long-term earnings power is much more important than next year's profits. We have forecasts for PARK24 going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for PARK24 that we have uncovered.

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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.