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-yearly results, and the shares gained 3.9% to JP¥1,343. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at JP¥83b, statutory earnings beat expectations by a notable 31%, coming in at JP¥15.07 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Pola Orbis Holdings' ten analysts currently expect revenues in 2025 to be JP¥172.7b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 38% to JP¥40.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥172.8b and earnings per share (EPS) of JP¥41.09 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Pola Orbis Holdings

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥1,278, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Pola Orbis Holdings at JP¥1,500 per share, while the most bearish prices it at JP¥1,100. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. For example, we noticed that Pola Orbis Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.4% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.5% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.9% annually. 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 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥1,278, 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. We have estimates - from multiple Pola Orbis Holdings analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Pola Orbis Holdings that 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.