K's Holdings Corporation Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, K's Holdings Corporation (TSE:8282) last week released its latest interim, and things did not turn out so great for shareholders. K's Holdings missed earnings this time around, with JP¥371b revenue coming in 2.1% below what the analysts had modelled. Statutory earnings per share (EPS) of JP¥35.39 also fell short of expectations by 16%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for K's Holdings

Taking into account the latest results, K's Holdings' six analysts currently expect revenues in 2025 to be JP¥739.9b, approximately in line with the last 12 months. Per-share earnings are expected to jump 77% to JP¥80.69. Before this earnings report, the analysts had been forecasting revenues of JP¥741.2b and earnings per share (EPS) of JP¥82.48 in 2025. 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.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥1,563, 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. There are some variant perceptions on K's Holdings, with the most bullish analyst valuing it at JP¥1,700 and the most bearish at JP¥1,380 per share. 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. For example, we noticed that K's Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.6% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.3% a year 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 6.9% per year. Although K's Holdings' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for K's Holdings. 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.

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 K's Holdings going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for K's 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.