Japan Airport Terminal Co., Ltd. Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next

Japan Airport Terminal Co., Ltd. (TSE:9706) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 3.5% to hit JP¥70b. Japan Airport Terminal reported statutory earnings per share (EPS) JP¥72.90, which was a notable 13% above what the analysts had forecast. 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'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 Japan Airport Terminal

Following the latest results, Japan Airport Terminal's seven analysts are now forecasting revenues of JP¥289.1b in 2026. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 8.8% to JP¥235 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥284.3b and earnings per share (EPS) of JP¥226 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of JP¥6,643, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Japan Airport Terminal at JP¥8,700 per share, while the most bearish prices it at JP¥5,500. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We can infer from the latest estimates that forecasts expect a continuation of Japan Airport Terminal'shistorical trends, as the 8.8% annualised revenue growth to the end of 2026 is roughly in line with the 9.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.7% annually. So although Japan Airport Terminal is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Japan Airport Terminal's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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. We have forecasts for Japan Airport Terminal 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 Japan Airport Terminal 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.