Meiji Holdings Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

As you might know, Meiji Holdings Co., Ltd. (TSE:2269) just kicked off its latest first-quarter results with some very strong numbers. The company beat forecasts, with revenue of JP¥279b, some 2.9% above estimates, and statutory earnings per share (EPS) coming in at JP¥50.23, 30% ahead of expectations. 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.

Check out our latest analysis for Meiji Holdings

Following the latest results, Meiji Holdings' eight analysts are now forecasting revenues of JP¥1.15t in 2025. This would be a satisfactory 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 2.7% to JP¥188 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.15t and earnings per share (EPS) of JP¥192 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of JP¥3,550, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Meiji Holdings at JP¥4,400 per share, while the most bearish prices it at JP¥3,100. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Meiji Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.1% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.8% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.4% per year. So it looks like Meiji Holdings is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Meiji Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Meiji Holdings going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Meiji Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.