Relo Group, Inc. Just Beat EPS By 24%: Here's What Analysts Think Will Happen Next

It's been a mediocre week for Relo Group, Inc. (TSE:8876) shareholders, with the stock dropping 10% to JP¥1,748 in the week since its latest annual results. Revenues were JP¥143b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥287, an impressive 24% ahead of estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 3 warning signs about Relo Group. View them for free.

Taking into account the latest results, the consensus forecast from Relo Group's four analysts is for revenues of JP¥151.2b in 2026. This reflects a reasonable 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dive 49% to JP¥147 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥151.2b and earnings per share (EPS) of JP¥150 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.

Check out our latest analysis for Relo Group

There were no changes to revenue or earnings estimates or the price target of JP¥2,350, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Relo Group at JP¥2,600 per share, while the most bearish prices it at JP¥2,000. 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 Relo Group's past performance and to peers in the same industry. For example, we noticed that Relo Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.8% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 24% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.1% annually. 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 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. 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. We have forecasts for Relo Group going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Relo Group (including 2 which don't sit too well with us) .

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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.