Analysts Have Made A Financial Statement On MEITEC Group Holdings Inc.'s (TSE:9744) Full-Year Report

The annual results for MEITEC Group Holdings Inc. (TSE:9744) were released last week, making it a good time to revisit its performance. MEITEC Group Holdings reported JP¥133b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥165 beat expectations, being 2.9% higher than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from MEITEC Group Holdings' six analysts is for revenues of JP¥138.0b in 2026. This reflects a modest 3.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 7.7% to JP¥178. Before this earnings report, the analysts had been forecasting revenues of JP¥138.1b and earnings per share (EPS) of JP¥177 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.

Check out our latest analysis for MEITEC Group Holdings

The analysts reconfirmed their price target of JP¥3,340, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on MEITEC Group Holdings, with the most bullish analyst valuing it at JP¥3,600 and the most bearish at JP¥3,140 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that MEITEC Group Holdings' revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2026 being well below the historical 7.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that MEITEC Group Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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. The consensus price target held steady at JP¥3,340, 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 MEITEC Group Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for MEITEC Group Holdings going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for MEITEC Group Holdings 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.