Mitsubishi Estate Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Mitsubishi Estate Co., Ltd. (TSE:8802) last week released its latest half-yearly, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with JP¥641b revenue coming in 6.3% lower than what the analystsexpected. Statutory earnings per share (EPS) of JP¥39.70 missed the mark badly, arriving some 20% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Mitsubishi Estate

Taking into account the latest results, the most recent consensus for Mitsubishi Estate from ten analysts is for revenues of JP¥1.59t in 2025. If met, it would imply a modest 2.1% increase on its revenue over the past 12 months. Statutory per share are forecast to be JP¥141, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.59t and earnings per share (EPS) of JP¥141 in 2025. 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¥3,106, suggesting that the company has met expectations in its recent result. 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 Mitsubishi Estate analyst has a price target of JP¥3,500 per share, while the most pessimistic values it at JP¥2,430. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 4.2% growth on an annualised basis. That is in line with its 4.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.4% annually. It's clear that while Mitsubishi Estate's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥3,106, 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 forecasts for Mitsubishi Estate going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Mitsubishi Estate has 2 warning signs (and 1 which is a bit unpleasant) 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.