Iida Group Holdings Co., Ltd. (TSE:3291) Just Released Its Half-Year Results And Analysts Are Updating Their Estimates

Last week saw the newest half-yearly earnings release from Iida Group Holdings Co., Ltd. (TSE:3291), an important milestone in the company's journey to build a stronger business. Iida Group Holdings reported JP¥685b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥90.18 beat expectations, being 3.8% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Iida Group Holdings after the latest results.

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Following the latest results, Iida Group Holdings' five analysts are now forecasting revenues of JP¥1.52t in 2026. This would be a modest 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 13% to JP¥212. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.52t and earnings per share (EPS) of JP¥206 in 2026. So the consensus seems to have become somewhat more optimistic on Iida Group Holdings' earnings potential following these results.

Check out our latest analysis for Iida Group Holdings

There's been no major changes to the consensus price target of JP¥2,328, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on Iida Group Holdings, with the most bullish analyst valuing it at JP¥2,600 and the most bearish at JP¥2,000 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Iida Group Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Iida Group Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 9.1% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 0.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Iida Group Holdings is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Iida Group Holdings following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥2,328, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Iida Group Holdings going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Iida Group Holdings that 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.