GENDA Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

GENDA Inc. (TSE:9166) shareholders are probably feeling a little disappointed, since its shares fell 5.5% to JP¥2,391 in the week after its latest annual results. It looks like a pretty bad result, all things considered. Although revenues of JP¥112b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 33% to hit JP¥45.32 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for GENDA

Taking into account the latest results, the current consensus from GENDA's dual analysts is for revenues of JP¥147.0b in 2026. This would reflect a substantial 31% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 93% to JP¥83.00. In the lead-up to this report, the analysts had been modelling revenues of JP¥143.5b and earnings per share (EPS) of JP¥98.70 in 2026. So it's pretty clear the analysts have mixed opinions on GENDA after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.

Curiously, the consensus price target rose 100% to JP¥2,400. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of GENDA'shistorical trends, as the 31% annualised revenue growth to the end of 2026 is roughly in line with the 32% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.8% annually. So although GENDA is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for GENDA. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 analyst estimates for GENDA going out as far as 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for GENDA (1 is a bit unpleasant!) that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.