The MEITEC Group Holdings Inc. (TSE:9744) First-Quarter Results Are Out And Analysts Have Published New Forecasts

Last week, you might have seen that MEITEC Group Holdings Inc. (TSE:9744) released its quarterly result to the market. The early response was not positive, with shares down 2.1% to JP¥3,199 in the past week. MEITEC Group Holdings reported in line with analyst predictions, delivering revenues of JP¥34b and statutory earnings per share of JP¥165, suggesting the business is executing well and in line with its plan. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, MEITEC Group Holdings' six analysts are now forecasting revenues of JP¥138.0b in 2026. This would be a modest 2.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.8% to JP¥178. Before this earnings report, the analysts had been forecasting revenues of JP¥138.0b and earnings per share (EPS) of JP¥178 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.

View 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. The most optimistic MEITEC Group Holdings analyst has a price target of JP¥3,600 per share, while the most pessimistic values it at JP¥3,140. 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.

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 3.8% growth on an annualised basis. This is compared to a historical growth rate of 7.4% 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 6.7% per year. 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. The consensus price target held steady at JP¥3,340, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for MEITEC Group Holdings going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for MEITEC Group Holdings that you need to take into consideration.

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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.