Kirin Holdings Company, Limited Just Recorded A 8.6% EPS Beat: Here's What Analysts Are Forecasting Next

Kirin Holdings Company, Limited (TSE:2503) just released its half-year report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.7% to hit JP¥1.1t. Statutory earnings per share (EPS) came in at JP¥38.67, some 8.6% above whatthe analysts had expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kirin Holdings Company after the latest results.

See our latest analysis for Kirin Holdings Company

Taking into account the latest results, Kirin Holdings Company's eleven analysts currently expect revenues in 2024 to be JP¥2.29t, approximately in line with the last 12 months. Statutory earnings per share are forecast to decrease 6.7% to JP¥159 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.27t and earnings per share (EPS) of JP¥164 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at JP¥2,259, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Kirin Holdings Company analyst has a price target of JP¥2,600 per share, while the most pessimistic values it at JP¥2,000. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Kirin Holdings Company'shistorical trends, as the 2.3% annualised revenue growth to the end of 2024 is roughly in line with the 2.8% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 2.7% per year. So although Kirin Holdings Company is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 Kirin Holdings Company. 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.

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 forecasts for Kirin Holdings Company going out to 2026, and you can see them free on our platform here.

You can also see whether Kirin Holdings Company is carrying too much debt, and whether its balance sheet is healthy, for free on our platform 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.