PAL GROUP Holdings CO., LTD. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

PAL GROUP Holdings CO., LTD. (TSE:2726) just released its first-quarter report and things are looking bullish. The company beat expectations with revenues of JP¥59b arriving 2.6% ahead of forecasts. Statutory earnings per share (EPS) were JP¥60.29, 9.1% ahead of estimates. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, PAL GROUP Holdings' three analysts are now forecasting revenues of JP¥232.9b in 2026. This would be a meaningful 8.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 37% to JP¥203. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥232.5b and earnings per share (EPS) of JP¥204 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.

View our latest analysis for PAL GROUP Holdings

The analysts reconfirmed their price target of JP¥4,117, 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. There are some variant perceptions on PAL GROUP Holdings, with the most bullish analyst valuing it at JP¥4,300 and the most bearish at JP¥3,750 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that PAL GROUP Holdings' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% annually. Even after the forecast slowdown in growth, it seems obvious that PAL GROUP Holdings is also expected to grow faster than the wider 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¥4,117, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on PAL GROUP Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple PAL GROUP Holdings analysts - going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for PAL GROUP Holdings you should know about.

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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.