K's Holdings Corporation Just Missed EPS By 52%: Here's What Analysts Think Will Happen Next

As you might know, K's Holdings Corporation (TSE:8282) recently reported its full-year numbers. It looks like a pretty bad result, all things considered. Although revenues of JP¥718b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 52% to hit JP¥41.64 per share. 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 K's Holdings

Taking into account the latest results, the consensus forecast from K's Holdings' six analysts is for revenues of JP¥739.0b in 2025. This reflects an okay 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 126% to JP¥95.36. Before this earnings report, the analysts had been forecasting revenues of JP¥739.8b and earnings per share (EPS) of JP¥102 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at JP¥1,390, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on K's Holdings, with the most bullish analyst valuing it at JP¥1,460 and the most bearish at JP¥1,350 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that K's Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 2.9% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 0.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.7% annually. So it's clear that despite the acceleration in growth, K's Holdings is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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..

Even so, be aware that K's Holdings is showing 2 warning signs 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.