Iida Group Holdings Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Last week, you might have seen that Iida Group Holdings Co., Ltd. (TSE:3291) released its half-year result to the market. The early response was not positive, with shares down 4.8% to JP¥2,012 in the past week. Statutory earnings per share fell badly short of expectations, coming in at JP¥116, some 22% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at JP¥767b. 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.
After the latest results, the five analysts covering Iida Group Holdings are now predicting revenues of JP¥1.66t in 2027. If met, this would reflect a satisfactory 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 3.1% to JP¥263. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.66t and earnings per share (EPS) of JP¥261 in 2027. 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.
View our latest analysis for Iida Group Holdings
The consensus price target fell 5.2% to JP¥2,360, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the semi-annual results. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Iida Group Holdings at JP¥2,600 per share, while the most bearish prices it at JP¥2,200. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Iida Group Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 8.6% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 2.2% p.a. 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 3.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Iida Group Holdings 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Iida Group Holdings' future valuation.
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 Iida Group Holdings going out to 2029, and you can see them free on our platform here..
You still need to take note of risks, for example - Iida Group Holdings has 2 warning signs (and 1 which is significant) we think you should know about.
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