Kirin Holdings Company, Limited Just Beat EPS By 18%: Here's What Analysts Think Will Happen Next

As you might know, Kirin Holdings Company, Limited (TSE:2503) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 2.3% to hit JP¥502b. Kirin Holdings Company reported statutory earnings per share (EPS) JP¥31.98, which was a notable 18% above what the analysts had forecast. 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.

Check out our latest analysis for Kirin Holdings Company

Taking into account the latest results, the most recent consensus for Kirin Holdings Company from twelve analysts is for revenues of JP¥2.26t in 2024. If met, it would imply a modest 3.2% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be JP¥162, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥2.24t and earnings per share (EPS) of JP¥163 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of JP¥2,288, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Kirin Holdings Company analyst has a price target of JP¥2,700 per share, while the most pessimistic values it at JP¥2,100. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Kirin Holdings Company's rate of growth is expected to accelerate meaningfully, with the forecast 4.3% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kirin Holdings Company is expected to grow much faster than its 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 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¥2,288, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Kirin Holdings Company analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Kirin Holdings Company , and understanding it should be part of your investment process.

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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.