MediPal Holdings Corporation Just Recorded A 8.6% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in MediPal Holdings Corporation (TSE:7459) had a good week, as its shares rose 2.1% to close at JP¥2,584 following the release of its first-quarter results. MediPal Holdings reported JP¥945b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥46.17 beat expectations, being 8.6% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on MediPal Holdings after the latest results.

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Following last week's earnings report, MediPal Holdings' five analysts are forecasting 2026 revenues to be JP¥3.77t, approximately in line with the last 12 months. Statutory earnings per share are expected to fall 12% to JP¥175 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥3.77t and earnings per share (EPS) of JP¥174 in 2026. 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.

View our latest analysis for MediPal Holdings

There were no changes to revenue or earnings estimates or the price target of JP¥2,474, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on MediPal Holdings, with the most bullish analyst valuing it at JP¥2,740 and the most bearish at JP¥2,320 per share. This is a very narrow spread of estimates, implying either that MediPal Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 MediPal Holdings' revenue growth is expected to slow, with the forecast 2.4% annualised growth rate until the end of 2026 being well below the historical 3.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than MediPal Holdings.

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. 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¥2,474, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on MediPal Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple MediPal Holdings analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of MediPal Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.