United Arrows Ltd. Just Missed EPS By 6.1%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that United Arrows Ltd. (TSE:7606) released its full-year result to the market. The early response was not positive, with shares down 2.5% to JP¥2,160 in the past week. Revenues of JP¥151b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥155, missing estimates by 6.1%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 1 warning sign about United Arrows. View them for free.

After the latest results, the four analysts covering United Arrows are now predicting revenues of JP¥160.3b in 2026. If met, this would reflect a satisfactory 6.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 32% to JP¥205. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥159.8b and earnings per share (EPS) of JP¥217 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for United Arrows

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥2,653, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values United Arrows at JP¥3,000 per share, while the most bearish prices it at JP¥2,400. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting United Arrows' growth to accelerate, with the forecast 6.2% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. United Arrows is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for United Arrows. 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¥2,653, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for United Arrows going out to 2028, and you can see them free on our platform here..

Even so, be aware that United Arrows is showing 1 warning sign in our investment analysis , 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.