Pickles Holdings Co.,Ltd. Just Missed EPS By 19%: Here's What Analysts Think Will Happen Next

As you might know, Pickles Holdings Co.,Ltd. (TSE:2935) last week released its latest annual, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at JP¥42b, statutory earnings missed forecasts by 19%, coming in at just JP¥77.09 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Pickles HoldingsLtd's three analysts is for revenues of JP¥43.5b in 2026. This would reflect a satisfactory 4.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 26% to JP¥97.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥43.5b and earnings per share (EPS) of JP¥85.60 in 2026. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for Pickles HoldingsLtd

The consensus price target fell 10% to JP¥1,255, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Pickles HoldingsLtd analyst has a price target of JP¥1,500 per share, while the most pessimistic values it at JP¥1,010. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Pickles HoldingsLtd shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Pickles HoldingsLtd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.8% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 1.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.7% per year. So it looks like Pickles HoldingsLtd is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Pickles HoldingsLtd's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Pickles HoldingsLtd's future valuation.

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 Pickles HoldingsLtd going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Pickles HoldingsLtd has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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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.