Stock Analysis

Results: H.U. Group Holdings, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

TSE:4544
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Investors in H.U. Group Holdings, Inc. (TSE:4544) had a good week, as its shares rose 4.9% to close at JP¥2,701 following the release of its quarterly results. It looks like a credible result overall - although revenues of JP¥62b were what the analysts expected, H.U. Group Holdings surprised by delivering a (statutory) profit of JP¥63.65 per share, an impressive 223% above what was forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for H.U. Group Holdings

earnings-and-revenue-growth
TSE:4544 Earnings and Revenue Growth February 11th 2025

Taking into account the latest results, the most recent consensus for H.U. Group Holdings from four analysts is for revenues of JP¥253.2b in 2026. If met, it would imply a credible 4.9% increase on its revenue over the past 12 months. Earnings are expected to improve, with H.U. Group Holdings forecast to report a statutory profit of JP¥102 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥253.5b and earnings per share (EPS) of JP¥103 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of JP¥2,348, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on H.U. Group Holdings, with the most bullish analyst valuing it at JP¥2,650 and the most bearish at JP¥2,100 per share. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 3.9% growth on an annualised basis. That is in line with its 4.5% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.7% per year. So although H.U. Group Holdings is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥2,348, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple H.U. Group Holdings analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for H.U. Group Holdings that you need to be mindful of.

Valuation is complex, but we're here to simplify it.

Discover if H.U. Group Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.

About TSE:4544

H.U. Group Holdings

Operates healthcare business in Japan, the United States, Europe, and internationally.

Excellent balance sheet and good value.

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