Isetan Mitsukoshi Holdings Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in Isetan Mitsukoshi Holdings Ltd. (TSE:3099) had a good week, as its shares rose 7.3% to close at JP¥2,631 following the release of its half-year results. It looks like a credible result overall - although revenues of JP¥130b were what the analysts expected, Isetan Mitsukoshi Holdings surprised by delivering a (statutory) profit of JP¥29.89 per share, an impressive 36% above what was forecast. 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 last week's earnings report, Isetan Mitsukoshi Holdings' eight analysts are forecasting 2026 revenues to be JP¥550.2b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be JP¥164, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥550.4b and earnings per share (EPS) of JP¥164 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.

See our latest analysis for Isetan Mitsukoshi Holdings

There were no changes to revenue or earnings estimates or the price target of JP¥2,470, suggesting that the company has met expectations in its recent result. 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 Isetan Mitsukoshi Holdings, with the most bullish analyst valuing it at JP¥2,930 and the most bearish at JP¥1,800 per share. 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 also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2026. Historically, Isetan Mitsukoshi Holdings' top line has shrunk approximately 8.4% annually 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 revenue grow 5.1% per year. Although Isetan Mitsukoshi Holdings' revenues are expected to improve, it seems that it is still expected to grow slower 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Isetan Mitsukoshi Holdings' revenue is expected to perform worse 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 Isetan Mitsukoshi Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Isetan Mitsukoshi Holdings going out to 2028, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Isetan Mitsukoshi Holdings , and understanding it should be part of your investment process.

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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.