This Broker Just Slashed Their Financial Partners Group Co.,Ltd. (TSE:7148) Earnings Forecasts

Market forces rained on the parade of Financial Partners Group Co.,Ltd. (TSE:7148) shareholders today, when the covering analyst downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

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Following the latest downgrade, Financial Partners GroupLtd's solitary analyst currently expects revenues in 2026 to be JP¥132b, approximately in line with the last 12 months. Statutory earnings per share are presumed to expand 18% to JP¥256. Previously, the analyst had been modelling revenues of JP¥153b and earnings per share (EPS) of JP¥317 in 2026. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.

View our latest analysis for Financial Partners GroupLtd

The consensus price target fell 13% to JP¥2,900, with the weaker earnings outlook clearly leading analyst valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Financial Partners GroupLtd's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 40% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.0% annually. Even after the forecast slowdown in growth, it seems obvious that Financial Partners GroupLtd is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. While the analyst did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Worse, Financial Partners GroupLtd is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. You can learn more about our debt analysis for free on our platform here.

We also provide an overview of the Financial Partners GroupLtd Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.