Pola Orbis Holdings Inc. Just Missed EPS By 36%: 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 first-quarter results, and the shares gained 7.3% to JP¥1,379. It looks like a pretty bad result, all things considered. Although revenues of JP¥41b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 36% to hit JP¥5.92 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, Pola Orbis Holdings' nine analysts currently expect revenues in 2025 to be JP¥173.2b, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 27% to JP¥42.82. Before this earnings report, the analysts had been forecasting revenues of JP¥173.3b and earnings per share (EPS) of JP¥42.65 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.

View our latest analysis for Pola Orbis Holdings

There were no changes to revenue or earnings estimates or the price target of JP¥1,248, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Pola Orbis Holdings analyst has a price target of JP¥1,400 per share, while the most pessimistic values it at JP¥1,050. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2025. That would be a definite improvement, given that the past five years have seen revenue shrink 2.5% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.9% per year. Although Pola Orbis Holdings' revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Pola Orbis Holdings going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Pola Orbis Holdings that you need to be mindful 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.