Pan Pacific International Holdings Corporation Just Missed Earnings - But Analysts Have Updated Their Models

Explore Pan Pacific International Holdings's Fair Values from the Community and select yours

It's been a good week for Pan Pacific International Holdings Corporation (TSE:7532) shareholders, because the company has just released its latest yearly results, and the shares gained 4.8% to JP¥5,500. Revenues of JP¥2.2t were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥152, missing estimates by 5.9%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Pan Pacific International Holdings after the latest results.

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Taking into account the latest results, the consensus forecast from Pan Pacific International Holdings' 15 analysts is for revenues of JP¥2.36t in 2026. This reflects a reasonable 4.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 24% to JP¥189. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.36t and earnings per share (EPS) of JP¥187 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.

Check out our latest analysis for Pan Pacific International Holdings

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.6% to JP¥5,370. It looks as though they previously had some doubts over whether the business would live up to their 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. Currently, the most bullish analyst values Pan Pacific International Holdings at JP¥6,500 per share, while the most bearish prices it at JP¥3,800. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Pan Pacific International Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.9% growth on an annualised basis. This is compared to a historical growth rate of 6.3% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.5% annually. Factoring in the forecast slowdown in growth, it looks like Pan Pacific International Holdings is forecast to grow at about the same rate as the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Pan Pacific International Holdings going out to 2028, and you can see them free on our platform here.

It might also be worth considering whether Pan Pacific International Holdings' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.