Stock Analysis

CUC Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Published
TSE:9158

CUC Inc. (TSE:9158) just released its interim report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 6.2% to hit JP¥11b. CUC also reported a statutory profit of JP¥35.57, which was an impressive 149% above what the analyst had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for CUC

TSE:9158 Earnings and Revenue Growth October 31st 2024

Taking into account the latest results, the consensus forecast from CUC's sole analyst is for revenues of JP¥46.2b in 2025. This reflects a decent 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to descend 13% to JP¥106 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥43.8b and earnings per share (EPS) of JP¥96.88 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analyst has increased their price target for CUC 8.3% to JP¥2,600on the back of these upgrades.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that CUC's rate of growth is expected to accelerate meaningfully, with the forecast 38% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 23% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that CUC is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CUC following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for CUC going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that CUC is showing 1 warning sign in our investment analysis , 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.