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

It's been a good week for Pola Orbis Holdings Inc. (TSE:4927) shareholders, because the company has just released its latest half-year results, and the shares gained 2.6% to JP¥1,419. Revenues were JP¥84b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥19.77, an impressive 42% ahead of estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Pola Orbis Holdings

Taking into account the latest results, Pola Orbis Holdings' ten analysts currently expect revenues in 2024 to be JP¥174.7b, approximately in line with the last 12 months. Per-share earnings are expected to swell 16% to JP¥51.05. Before this earnings report, the analysts had been forecasting revenues of JP¥176.1b and earnings per share (EPS) of JP¥50.48 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,318. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Pola Orbis Holdings, with the most bullish analyst valuing it at JP¥1,500 and the most bearish at JP¥1,150 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. 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 3.9% annualised growth until the end of 2024. If achieved, this would be a much better result than the 5.8% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.1% per year. So while Pola Orbis Holdings' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

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. We have estimates - from multiple Pola Orbis Holdings analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Pola Orbis Holdings has 1 warning sign we think you should be aware 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.