Results: CUC Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

There's been a major selloff in CUC Inc. (TSE:9158) shares in the week since it released its full-year report, with the stock down 24% to JP¥1,733. It looks like a credible result overall - although revenues of JP¥33b were what the analysts expected, CUC surprised by delivering a (statutory) profit of JP¥93.99 per share, an impressive 30% above what was 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.

Check out our latest analysis for CUC

After the latest results, the four analysts covering CUC are now predicting revenues of JP¥43.1b in 2025. If met, this would reflect a substantial 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 8.9% to JP¥80.61 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥41.9b and earnings per share (EPS) of JP¥95.54 in 2025. So it's pretty clear the analysts have mixed opinions on CUC after the latest results; even though they upped their revenue numbers, it came at the cost of a substantial drop in per-share earnings expectations.

The consensus price target fell 13% to JP¥2,700, suggesting that the analysts are primarily focused on earnings as the driver of value for this business.

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 31% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CUC to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple CUC analysts - going out to 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.