Earnings Report: IMAGICA GROUP Inc. Missed Revenue Estimates By 13%

It's been a sad week for IMAGICA GROUP Inc. (TSE:6879), who've watched their investment drop 16% to JP¥440 in the week since the company reported its quarterly result. Revenues were JP¥20b, 13% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of JP¥53.57 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.

See our latest analysis for IMAGICA GROUP

Following last week's earnings report, IMAGICA GROUP's two analysts are forecasting 2025 revenues to be JP¥97.3b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 48% to JP¥52.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥98.3b and earnings per share (EPS) of JP¥48.60 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥930, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the IMAGICA GROUP's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of IMAGICA GROUP'shistorical trends, as the 1.8% annualised revenue growth to the end of 2025 is roughly in line with the 1.5% annual growth 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 revenues grow 5.7% per year. So although IMAGICA GROUP is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards IMAGICA GROUP following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that IMAGICA GROUP's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥930, 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 IMAGICA GROUP. Long-term earnings power is much more important than next year's profits. We have analyst estimates for IMAGICA GROUP going out as far as 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with IMAGICA GROUP , and understanding them should be part of your investment process.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com