Itoham Yonekyu Holdings Inc. Just Missed Earnings - But Analysts Have Updated Their Models

Itoham Yonekyu Holdings Inc. (TSE:2296) shareholders are probably feeling a little disappointed, since its shares fell 2.7% to JP¥3,760 in the week after its latest third-quarter results. Statutory earnings per share of JP¥106 unfortunately missed expectations by 19%, although it was encouraging to see revenues of JP¥268b exceed expectations by 2.1%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Itoham Yonekyu Holdings

Following last week's earnings report, Itoham Yonekyu Holdings' dual analysts are forecasting 2026 revenues to be JP¥993.9b, approximately in line with the last 12 months. Statutory earnings per share are predicted to surge 21% to JP¥265. Before this earnings report, the analysts had been forecasting revenues of JP¥984.2b and earnings per share (EPS) of JP¥281 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at JP¥3,700, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. We would highlight that Itoham Yonekyu Holdings' revenue growth is expected to slow, with the forecast 0.6% annualised growth rate until the end of 2026 being well below the historical 3.6% 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 4.0% 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 Itoham Yonekyu Holdings.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Before you take the next step you should know about the 1 warning sign for Itoham Yonekyu Holdings that we have uncovered.

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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.