Earnings Miss: Mitsubishi Estate Co., Ltd. Missed EPS By 5.2% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that Mitsubishi Estate Co., Ltd. (TSE:8802) filed its interim result this time last week. The early response was not positive, with shares down 2.1% to JP¥3,298 in the past week. Mitsubishi Estate beat revenue expectations by 6.1%, at JP¥743b. Statutory earnings per share (EPS) came in at JP¥47.03, some 5.2% short of analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Mitsubishi Estate's ten analysts is for revenues of JP¥1.81t in 2026. This would reflect a reasonable 7.7% increase on its revenue over the past 12 months. Statutory per share are forecast to be JP¥165, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.81t and earnings per share (EPS) of JP¥165 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.

See our latest analysis for Mitsubishi Estate

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,716. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Mitsubishi Estate analyst has a price target of JP¥4,300 per share, while the most pessimistic values it at JP¥3,500. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mitsubishi Estate's past performance and to peers in the same industry. The analysts are definitely expecting Mitsubishi Estate's growth to accelerate, with the forecast 16% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Mitsubishi Estate 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. 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.

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. At Simply Wall St, we have a full range of analyst estimates for Mitsubishi Estate going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Mitsubishi Estate that you need to take into consideration.

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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.