Earnings Release: Here's Why Analysts Cut Their Macnica Holdings, Inc. (TSE:3132) Price Target To JP¥2,100

Macnica Holdings, Inc. (TSE:3132) shareholders are probably feeling a little disappointed, since its shares fell 5.3% to JP¥1,749 in the week after its latest third-quarter results. Macnica Holdings reported in line with analyst predictions, delivering revenues of JP¥263b and statutory earnings per share of JP¥265, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Macnica Holdings

Taking into account the latest results, the consensus forecast from Macnica Holdings' three analysts is for revenues of JP¥1.16t in 2026. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 11% to JP¥220. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.15t and earnings per share (EPS) of JP¥217 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.

With no major changes to earnings forecasts, the consensus price target fell 28% to JP¥2,100, suggesting that the analysts might have previously been hoping for an earnings upgrade.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Macnica Holdings' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.2% per year. Even after the forecast slowdown in growth, it seems obvious that Macnica Holdings is also expected to grow faster than 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Macnica Holdings' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Macnica Holdings going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Macnica Holdings that we have uncovered.

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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.