Analysts Are Updating Their Persol Holdings Co.,Ltd. (TSE:2181) Estimates After Its Half-Yearly Results
It's been a good week for Persol Holdings Co.,Ltd. (TSE:2181) shareholders, because the company has just released its latest interim results, and the shares gained 3.2% to JP¥294. Persol HoldingsLtd reported in line with analyst predictions, delivering revenues of JP¥418b and statutory earnings per share of JP¥19.42, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 six analysts covering Persol HoldingsLtd are now predicting revenues of JP¥1.68t in 2027. If met, this would reflect a modest 2.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 10% to JP¥21.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.69t and earnings per share (EPS) of JP¥21.36 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 Persol HoldingsLtd
The analysts reconfirmed their price target of JP¥320, 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 Persol HoldingsLtd at JP¥380 per share, while the most bearish prices it at JP¥280. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Persol HoldingsLtd's revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2027 being well below the historical 9.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Persol HoldingsLtd.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Persol HoldingsLtd going out to 2029, and you can see them free on our platform here.
Even so, be aware that Persol HoldingsLtd is showing 1 warning sign in our investment analysis , you should know about...
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