Analysts Are Updating Their MEITEC Group Holdings Inc. (TSE:9744) Estimates After Its Third-Quarter Results

MEITEC Group Holdings Inc. (TSE:9744) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of JP¥35b and statutory earnings per share of JP¥158. 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.

See our latest analysis for MEITEC Group Holdings

Taking into account the latest results, the consensus forecast from MEITEC Group Holdings' six analysts is for revenues of JP¥137.5b in 2026. This reflects a reasonable 4.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.0% to JP¥173. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥136.9b and earnings per share (EPS) of JP¥172 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of JP¥3,200, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on MEITEC Group Holdings, with the most bullish analyst valuing it at JP¥3,500 and the most bearish at JP¥2,900 per share. This is a very narrow spread of estimates, implying either that MEITEC Group Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 pretty clear that there is an expectation that MEITEC Group Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.4% growth on an annualised basis. This is compared to a historical growth rate of 7.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than MEITEC Group Holdings.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that MEITEC Group Holdings' revenue is expected to perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for MEITEC Group Holdings going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - MEITEC Group Holdings has 1 warning sign we think you should be aware of.

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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.