Isetan Mitsukoshi Holdings Ltd. Just Recorded A 48% EPS Beat: Here's What Analysts Are Forecasting Next

Last week saw the newest half-year earnings release from Isetan Mitsukoshi Holdings Ltd. (TSE:3099), an important milestone in the company's journey to build a stronger business. Revenues were JP¥134b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥31.39, an impressive 48% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Isetan Mitsukoshi Holdings

Following last week's earnings report, Isetan Mitsukoshi Holdings' eight analysts are forecasting 2025 revenues to be JP¥555.8b, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 12% to JP¥158 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥556.1b and earnings per share (EPS) of JP¥159 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¥3,006, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Isetan Mitsukoshi Holdings, with the most bullish analyst valuing it at JP¥3,700 and the most bearish at JP¥2,100 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. 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 2025. Historically, Isetan Mitsukoshi Holdings' top line has shrunk approximately 20% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.4% annually. 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

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. We have forecasts for Isetan Mitsukoshi Holdings going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Isetan Mitsukoshi Holdings (2 make us uncomfortable!) that you need to be mindful 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.