CUC Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

CUC Inc. (TSE:9158) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 5.7% to hit JP¥11b. CUC also reported a statutory profit of JP¥32.94, which was an impressive 97% above what the analysts had forecast. 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.

View our latest analysis for CUC

Taking into account the latest results, the consensus forecast from CUC's dual analysts is for revenues of JP¥44.1b in 2025. This reflects a major 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 7.9% to JP¥96.71 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥42.9b and earnings per share (EPS) of JP¥82.72 in 2025. So it seems there's been a definite increase in optimism about CUC's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

As a result, it might be a surprise to see thatthe analysts have cut their price target 5.6% to JP¥2,550, which could suggest the forecast improvement in performance is not expected to last.

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. The analysts are definitely expecting CUC's growth to accelerate, with the forecast 31% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.8% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.4% 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 analysts 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for CUC going out as far as 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 CUC 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com