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

Pan Pacific International Holdings Corporation (TSE:7532) shareholders are probably feeling a little disappointed, since its shares fell 4.2% to JP¥3,685 in the week after its latest first-quarter results. It looks like the results were a bit of a negative overall. While revenues of JP¥551b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 9.5% to hit JP¥34.28 per share. 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.

See our latest analysis for Pan Pacific International Holdings

Following the latest results, Pan Pacific International Holdings' 18 analysts are now forecasting revenues of JP¥2.22t in 2025. This would be a satisfactory 4.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 11% to JP¥157. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.22t and earnings per share (EPS) of JP¥157 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.

There were no changes to revenue or earnings estimates or the price target of JP¥4,239, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Pan Pacific International Holdings, with the most bullish analyst valuing it at JP¥5,000 and the most bearish at JP¥2,970 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Pan Pacific International Holdings shareholders.

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 can infer from the latest estimates that forecasts expect a continuation of Pan Pacific International Holdings'historical trends, as the 5.6% annualised revenue growth to the end of 2025 is roughly in line with the 5.8% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.5% per year. It's clear that while Pan Pacific International Holdings' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥4,239, 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 Pan Pacific International Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Pan Pacific International Holdings analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Pan Pacific International Holdings that 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.