Kirin Holdings Company, Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Investors in Kirin Holdings Company, Limited (TSE:2503) had a good week, as its shares rose 5.2% to close at JP¥3,120 following the release of its quarterly results. It looks like a credible result overall - although revenues of JP¥634b were what the analysts expected, Kirin Holdings Company surprised by delivering a (statutory) profit of JP¥57.58 per share, an impressive 34% above what was forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Kirin Holdings Company's 13 analysts are now forecasting revenues of JP¥2.60t in 2027. This would be a credible 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 7.3% to JP¥225 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥2.60t and earnings per share (EPS) of JP¥226 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.
See our latest analysis for Kirin Holdings Company
The analysts reconfirmed their price target of JP¥2,958, showing that the business is executing well and in line with expectations. 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 Kirin Holdings Company at JP¥3,800 per share, while the most bearish prices it at JP¥2,550. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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 would highlight that Kirin Holdings Company's revenue growth is expected to slow, with the forecast 2.2% annualised growth rate until the end of 2027 being well below the historical 7.1% 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) 2.5% annually. Factoring in the forecast slowdown in growth, it looks like Kirin Holdings Company is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 estimates - from multiple Kirin Holdings Company analysts - going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - Kirin Holdings Company has 1 warning sign we think you should be aware of.
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