Ain Holdings Inc. (TSE:9627) Just Released Its First-Quarter Earnings: Here's What Analysts Think

It's been a good week for Ain Holdings Inc. (TSE:9627) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.2% to JP¥5,401. It was a workmanlike result, with revenues of JP¥104b coming in 2.9% ahead of expectations, and statutory earnings per share of JP¥325, in line with analyst appraisals. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Ain Holdings

Following the latest results, Ain Holdings' four analysts are now forecasting revenues of JP¥434.0b in 2025. This would be a reasonable 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 2.9% to JP¥302 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥426.0b and earnings per share (EPS) of JP¥309 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥5,523, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Ain Holdings, with the most bullish analyst valuing it at JP¥7,190 and the most bearish at JP¥4,300 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Ain Holdings'historical trends, as the 8.3% annualised revenue growth to the end of 2025 is roughly in line with the 7.7% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.3% per year. So it's pretty clear that Ain Holdings is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ain Holdings. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Ain Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Ain Holdings going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Ain Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.