Imperial Hotel, Ltd. Just Beat EPS By 13%: Here's What Analysts Think Will Happen Next

Imperial Hotel, Ltd. (TSE:9708) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. Revenues JP¥15b disappointed slightly, at3.5% below what the analyst had predicted. Profits were a relative bright spot, with statutory per-share earnings of JP¥18.05 coming in 13% above what was anticipated. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Imperial Hotel

Taking into account the latest results, the consensus forecast from Imperial Hotel's lone analyst is for revenues of JP¥54.2b in 2026. This reflects an okay 2.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plunge 32% to JP¥14.30 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥54.9b and earnings per share (EPS) of JP¥16.00 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

The consensus price target held steady at JP¥950, with the analyst seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Imperial Hotel's past performance and to peers in the same industry. We would highlight that Imperial Hotel's revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2026 being well below the historical 7.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Imperial Hotel.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥950, with the latest estimates not enough to have an impact on their price target.

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 2027, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Imperial Hotel (1 is potentially serious!) that you need to take into consideration.

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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.