KATITAS CO., Ltd. (TSE:8919) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

KATITAS CO., Ltd. (TSE:8919) shareholders are probably feeling a little disappointed, since its shares fell 2.4% to JP¥1,715 in the week after its latest quarterly results. Revenues came in 4.2% below expectations, at JP¥31b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥26.27 being roughly in line with analyst 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.

Check out our latest analysis for KATITAS

After the latest results, the eight analysts covering KATITAS are now predicting revenues of JP¥134.6b in 2025. If met, this would reflect an okay 6.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 13% to JP¥121. Before this earnings report, the analysts had been forecasting revenues of JP¥135.4b and earnings per share (EPS) of JP¥121 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.

The analysts reconfirmed their price target of JP¥2,358, showing that the business is executing well and in line with expectations. 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 KATITAS at JP¥3,500 per share, while the most bearish prices it at JP¥1,730. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 8.9% growth on an annualised basis. That is in line with its 8.9% 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 4.4% per year. So it's pretty clear that KATITAS is forecast to grow substantially faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still 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.

With that in mind, we wouldn't be too quick to come to a conclusion on KATITAS. Long-term earnings power is much more important than next year's profits. We have forecasts for KATITAS going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - KATITAS has 1 warning sign we think 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.