Earnings Beat: Pola Orbis Holdings Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Pola Orbis Holdings Inc. (TSE:4927) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to JP¥1,409 in the week after its latest quarterly results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at JP¥41b, statutory earnings beat expectations by a notable 21%, coming in at JP¥14.13 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Pola Orbis Holdings

Following the latest results, Pola Orbis Holdings' eight analysts are now forecasting revenues of JP¥178.9b in 2024. This would be a credible 4.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 21% to JP¥55.18. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥179.8b and earnings per share (EPS) of JP¥56.20 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥1,559, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Pola Orbis Holdings, with the most bullish analyst valuing it at JP¥1,700 and the most bearish at JP¥1,400 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Pola Orbis Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

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. One thing stands out from these estimates, which is that Pola Orbis Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.3% annualised growth until the end of 2024. If achieved, this would be a much better result than the 6.8% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.6% per year. Not only are Pola Orbis Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥1,559, 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 Pola Orbis Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Pola Orbis Holdings going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Pola Orbis Holdings , and understanding this should be part of your investment process.

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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.