Earnings Miss: St.Cousair Co., Ltd. Missed EPS By 31% And Analysts Are Revising Their Forecasts

As you might know, St.Cousair Co., Ltd. (TSE:2937) 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¥19b, statutory earnings missed forecasts by an incredible 31%, coming in at just JP¥89.42 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for St.Cousair

After the latest results, the sole analyst covering St.Cousair are now predicting revenues of JP¥21.0b in 2025. If met, this would reflect a decent 9.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.5% to JP¥95.30. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥21.7b and earnings per share (EPS) of JP¥146 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

It'll come as no surprise then, to learn that the analyst has cut their price target 19% to JP¥3,400.

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 St.Cousair's revenue growth is expected to slow, with the forecast 9.6% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.8% per year. So it's pretty clear that, while St.Cousair's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded St.Cousair's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of St.Cousair's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for St.Cousair that you need to be mindful of.

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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.