Lion Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Lion Corporation (TSE:4912) just released its latest third-quarter report and things are not looking great. Results showed a clear earnings miss, with JP¥103b revenue coming in 2.8% lower than what the analystsexpected. Statutory earnings per share (EPS) of JP¥9.89 missed the mark badly, arriving some 38% below what was expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lion after the latest results.

View our latest analysis for Lion

Following the latest results, Lion's nine analysts are now forecasting revenues of JP¥426.1b in 2025. This would be a satisfactory 4.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 3.5% to JP¥69.01. Before this earnings report, the analysts had been forecasting revenues of JP¥426.1b and earnings per share (EPS) of JP¥69.01 in 2025. 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.

The analysts reconfirmed their price target of JP¥1,630, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Lion analyst has a price target of JP¥1,800 per share, while the most pessimistic values it at JP¥1,480. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Lion'shistorical trends, as the 3.6% annualised revenue growth to the end of 2025 is roughly in line with the 3.8% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 5.6% annually. So it's pretty clear that Lion is expected to grow slower than similar companies in the same 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lion's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 forecasts for Lion going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Lion's 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.