Earnings Report: SRE Holdings Corporation Missed Revenue Estimates By 33%

Shareholders of SRE Holdings Corporation (TSE:2980) will be pleased this week, given that the stock price is up 11% to JP¥3,780 following its latest quarterly results. SRE Holdings reported a serious miss, with revenue of JP¥4.3b falling a huge 33% short of analyst estimates. The bright side is that statutory earnings per share of JP¥85.83 were in line with forecasts. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for SRE Holdings

Taking into account the latest results, the consensus forecast from SRE Holdings' three analysts is for revenues of JP¥30.2b in 2026. This reflects a solid 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 126% to JP¥154. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥30.0b and earnings per share (EPS) of JP¥154 in 2026. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥5,650, 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. Currently, the most bullish analyst values SRE Holdings at JP¥6,000 per share, while the most bearish prices it at JP¥5,300. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that SRE Holdings' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2026 being well below the historical 35% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% per year. Even after the forecast slowdown in growth, it seems obvious that SRE Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥5,650, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple SRE 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 3 warning signs for SRE Holdings (1 can't be ignored) 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.