The KATITAS CO., Ltd. (TSE:8919) Interim Results Are Out And Analysts Have Published New Forecasts

It's been a pretty great week for KATITAS CO., Ltd. (TSE:8919) shareholders, with its shares surging 16% to JP¥2,899 in the week since its latest half-year results. The result was positive overall - although revenues of JP¥72b were in line with what the analysts predicted, KATITAS surprised by delivering a statutory profit of JP¥76.56 per share, modestly greater than 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from KATITAS' eight analysts is for revenues of JP¥148.8b in 2026. This reflects a satisfactory 7.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.8% to JP¥149. In the lead-up to this report, the analysts had been modelling revenues of JP¥144.8b and earnings per share (EPS) of JP¥144 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for KATITAS

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥3,008, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. Currently, the most bullish analyst values KATITAS at JP¥3,700 per share, while the most bearish prices it at JP¥2,640. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's clear from the latest estimates that KATITAS' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 7.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that KATITAS is expected to grow much faster than its industry.

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 KATITAS 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. 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. At Simply Wall St, we have a full range of analyst estimates for KATITAS going out to 2028, 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.