Kushikatsu Tanaka Holdings Co. Just Missed EPS By 31%: Here's What Analysts Think Will Happen Next

Kushikatsu Tanaka Holdings Co. (TSE:3547) shareholders are probably feeling a little disappointed, since its shares fell 6.9% to JP¥1,303 in the week after its latest annual results. It looks like a pretty bad result, all things considered. Although revenues of JP¥17b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 31% to hit JP¥41.39 per share. 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.

View our latest analysis for Kushikatsu Tanaka Holdings

After the latest results, the two analysts covering Kushikatsu Tanaka Holdings are now predicting revenues of JP¥20.1b in 2025. If met, this would reflect a solid 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 137% to JP¥97.90. In the lead-up to this report, the analysts had been modelling revenues of JP¥19.1b and earnings per share (EPS) of JP¥83.25 in 2025. So it seems there's been a definite increase in optimism about Kushikatsu Tanaka Holdings' future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of JP¥2,200, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.0% annually. So although Kushikatsu Tanaka Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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 Kushikatsu Tanaka Holdings following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Before you take the next step you should know about the 2 warning signs for Kushikatsu Tanaka Holdings (1 is a bit concerning!) that we have uncovered.

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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.