WEBULL

Mitsubishi Estate Co., Ltd. Recorded A 9.4% Miss On Revenue: Analysts Are Revisiting Their Models

Simply Wall St · 08/09 23:48

Investors in Mitsubishi Estate Co., Ltd. (TSE:8802) had a good week, as its shares rose 6.5% to close at JP¥3,061 following the release of its quarterly results. Revenues came in 9.4% below expectations, at JP¥357b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥25.75 being roughly in line with analyst estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

earnings-and-revenue-growth
TSE:8802 Earnings and Revenue Growth August 9th 2025

Taking into account the latest results, the most recent consensus for Mitsubishi Estate from ten analysts is for revenues of JP¥1.81t in 2026. If met, it would imply a decent 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 3.6% to JP¥165. Before this earnings report, the analysts had been forecasting revenues of JP¥1.79t and earnings per share (EPS) of JP¥163 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Mitsubishi Estate

The analysts reconfirmed their price target of JP¥3,226, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Mitsubishi Estate, with the most bullish analyst valuing it at JP¥3,710 and the most bearish at JP¥2,900 per share. This is a very narrow spread of estimates, implying either that Mitsubishi Estate is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Mitsubishi Estate's growth to accelerate, with the forecast 17% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Mitsubishi Estate is expected to grow much faster than its 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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Mitsubishi Estate. Long-term earnings power is much more important than next year's profits. We have forecasts for Mitsubishi Estate going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Mitsubishi Estate you should know about.