PILLAR Corporation Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Shareholders might have noticed that PILLAR Corporation (TSE:6490) filed its quarterly result this time last week. The early response was not positive, with shares down 9.5% to JP¥3,845 in the past week. Revenues were JP¥14b, 13% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of JP¥463 being in line with what the analysts forecast. 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.

View our latest analysis for PILLAR

Taking into account the latest results, the current consensus from PILLAR's three analysts is for revenues of JP¥63.0b in 2026. This would reflect a notable 8.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 12% to JP¥440. Before this earnings report, the analysts had been forecasting revenues of JP¥65.1b and earnings per share (EPS) of JP¥467 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of JP¥6,735, suggesting the downgrades are not expected to have a long-term impact on PILLAR's valuation. 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. There are some variant perceptions on PILLAR, with the most bullish analyst valuing it at JP¥6,770 and the most bearish at JP¥6,700 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that PILLAR's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.8% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.0% annually. Even after the forecast slowdown in growth, it seems obvious that PILLAR is also expected to grow faster than the wider 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for PILLAR going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for PILLAR that we have uncovered.

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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.