KATITAS CO., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a good week for KATITAS CO., Ltd. (TSE:8919) shareholders, because the company has just released its latest half-yearly results, and the shares gained 8.2% to JP¥2,100. It looks like a credible result overall - although revenues of JP¥64b were what the analysts expected, KATITAS surprised by delivering a (statutory) profit of JP¥67.04 per share, an impressive 31% above what was forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for KATITAS

Following the latest results, KATITAS' eight analysts are now forecasting revenues of JP¥133.2b in 2025. This would be a reasonable 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.2% to JP¥123. In the lead-up to this report, the analysts had been modelling revenues of JP¥133.1b and earnings per share (EPS) of JP¥122 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,462. 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 KATITAS at JP¥3,500 per share, while the most bearish prices it at JP¥1,850. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of KATITAS'historical trends, as the 7.1% annualised revenue growth to the end of 2025 is roughly in line with the 8.7% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.2% per year. So it's pretty clear that KATITAS is forecast to grow substantially faster than its industry.

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. The consensus price target held steady at JP¥2,462, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple KATITAS analysts - 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 1 warning sign for KATITAS 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.