Skylark Holdings Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Skylark Holdings Co., Ltd. (TSE:3197) shareholders are probably feeling a little disappointed, since its shares fell 7.3% to JP¥2,208 in the week after its latest quarterly results. It was not a great result overall. While revenues of JP¥103b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 17% to hit JP¥18.30 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Skylark Holdings

Taking into account the latest results, the consensus forecast from Skylark Holdings' four analysts is for revenues of JP¥409.2b in 2025. This reflects a reasonable 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 20% to JP¥56.28. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥406.7b and earnings per share (EPS) of JP¥56.50 in 2025. 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¥2,038, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Skylark Holdings at JP¥2,600 per share, while the most bearish prices it at JP¥1,200. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Skylark Holdings' growth to accelerate, with the forecast 4.8% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.5% annually. So it's clear that despite the acceleration in growth, Skylark Holdings is expected to grow meaningfully slower than the industry average.

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 Skylark Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥2,038, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Skylark Holdings going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether Skylark Holdings' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.