Relo Group, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a pretty great week for Relo Group, Inc. (TSE:8876) shareholders, with its shares surging 19% to JP¥1,637 in the week since its latest yearly results. Revenues came in at JP¥133b, in line with estimates, while Relo Group reported a statutory loss of JP¥182 per share, well short of prior analyst forecasts for a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Relo Group

After the latest results, the four analysts covering Relo Group are now predicting revenues of JP¥145.6b in 2025. If met, this would reflect a meaningful 9.8% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Relo Group forecast to report a statutory profit of JP¥148 per share. Before this earnings report, the analysts had been forecasting revenues of JP¥142.6b and earnings per share (EPS) of JP¥125 in 2025. So it seems there's been a definite increase in optimism about Relo Group's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

Despite these upgrades, the consensus price target fell 17% to JP¥2,050, perhaps signalling that the uplift in performance is not expected to last. 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 Relo Group at JP¥3,000 per share, while the most bearish prices it at JP¥1,600. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. One thing stands out from these estimates, which is that Relo Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 9.8% annualised growth until the end of 2025. If achieved, this would be a much better result than the 20% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.9% per year. So it looks like Relo Group is expected to grow faster than its competitors, at least for a while.

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 Relo Group following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Relo Group going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 3 warning signs for Relo Group 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.