Itoham Yonekyu Holdings Inc. Just Missed EPS By 34%: Here's What Analysts Think Will Happen Next

As you might know, Itoham Yonekyu Holdings Inc. (TSE:2296) last week released its latest interim, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with JP¥245b revenue coming in 9.2% lower than what the analystsexpected. Statutory earnings per share (EPS) of JP¥55.19 missed the mark badly, arriving some 34% below what was expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Itoham Yonekyu Holdings' three analysts are forecasting 2026 revenues to be JP¥1.04t, approximately in line with the last 12 months. Per-share earnings are expected to grow 11% to JP¥319. Before this earnings report, the analysts had been forecasting revenues of JP¥1.07t and earnings per share (EPS) of JP¥331 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Check out our latest analysis for Itoham Yonekyu Holdings

The analysts made no major changes to their price target of JP¥4,667, suggesting the downgrades are not expected to have a long-term impact on Itoham Yonekyu Holdings' valuation. 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. Currently, the most bullish analyst values Itoham Yonekyu Holdings at JP¥5,200 per share, while the most bearish prices it at JP¥4,100. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Itoham Yonekyu Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 0.2% annualised decline to the end of 2026. That is a notable change from historical growth of 4.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Itoham Yonekyu Holdings is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Itoham Yonekyu Holdings. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

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. We have forecasts for Itoham Yonekyu Holdings going out to 2028, and you can see them 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.