JFE Holdings, Inc. Just Recorded A 35% EPS Beat: Here's What Analysts Are Forecasting Next

Last week saw the newest interim earnings release from JFE Holdings, Inc. (TSE:5411), an important milestone in the company's journey to build a stronger business. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at JP¥2.2t, statutory earnings beat expectations by a notable 35%, coming in at JP¥30.73 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, JFE Holdings' nine analysts are forecasting 2026 revenues to be JP¥4.65t, approximately in line with the last 12 months. Per-share earnings are expected to rise 2.1% to JP¥122. In the lead-up to this report, the analysts had been modelling revenues of JP¥4.65t and earnings per share (EPS) of JP¥123 in 2026. 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.

View our latest analysis for JFE Holdings

The analysts reconfirmed their price target of JP¥1,942, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic JFE Holdings analyst has a price target of JP¥2,000 per share, while the most pessimistic values it at JP¥1,750. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that JFE Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.3% growth on an annualised basis. This is compared to a historical growth rate of 8.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that JFE Holdings is also expected to grow slower than other industry participants.

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. The consensus price target held steady at JP¥1,942, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple JFE Holdings analysts - going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - JFE Holdings has 4 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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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.