Results: Medley, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
Shareholders will be ecstatic, with their stake up 28% over the past week following Medley, Inc.'s (TSE:4480) latest interim results. Revenues JP¥12b disappointed slightly, at3.2% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of JP¥51.53 coming in 12% above what was anticipated. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Medley's five analysts is for revenues of JP¥46.4b in 2026. This reflects a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 21% to JP¥72.77. Before this earnings report, the analysts had been forecasting revenues of JP¥46.5b and earnings per share (EPS) of JP¥73.42 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.
Check out our latest analysis for Medley
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,084. 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 Medley at JP¥4,430 per share, while the most bearish prices it at JP¥2,290. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Medley'shistorical trends, as the 28% annualised revenue growth to the end of 2026 is roughly in line with the 30% annual growth 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 revenues grow 11% per year. So although Medley is expected to maintain its revenue growth rate, it's definitely 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥3,084, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Medley going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Medley that you need to take into consideration.
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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.