Revenue Miss: M&A Capital Partners Co.,Ltd. Fell 13% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

As you might know, M&A Capital Partners Co.,Ltd. (TSE:6080) recently reported its half-year numbers. Revenues were JP¥4.1b, 13% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of JP¥133 being in line with what the analysts forecast. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for M&A Capital PartnersLtd

Taking into account the latest results, the most recent consensus for M&A Capital PartnersLtd from five analysts is for revenues of JP¥21.2b in 2024. If met, it would imply a major 41% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 115% to JP¥155. In the lead-up to this report, the analysts had been modelling revenues of JP¥21.6b and earnings per share (EPS) of JP¥161 in 2024. 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 small dip in their earnings per share forecasts.

The consensus price target held steady at JP¥2,823, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on M&A Capital PartnersLtd, with the most bullish analyst valuing it at JP¥4,400 and the most bearish at JP¥1,870 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the M&A Capital PartnersLtd's past performance and to peers in the same industry. The analysts are definitely expecting M&A Capital PartnersLtd's growth to accelerate, with the forecast 98% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect M&A Capital PartnersLtd to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥2,823, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on M&A Capital PartnersLtd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for M&A Capital PartnersLtd going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - M&A Capital PartnersLtd has 2 warning signs we think you should be aware of.

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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.