Earnings Miss: CUC Inc. Missed EPS And Analysts Are Revising Their Forecasts

CUC Inc. (TSE:9158) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a pretty negative result overall, with revenues of JP¥14b missing analyst predictions by 4.7%. Worse, the business reported a statutory loss of JP¥9.60 per share, a substantial decline on analyst expectations of a profit. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CUC after the latest results.

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After the latest results, the dual analysts covering CUC are now predicting revenues of JP¥62.7b in 2027. If met, this would reflect a meaningful 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plunge 58% to JP¥34.28 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥63.5b and earnings per share (EPS) of JP¥36.83 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Check out our latest analysis for CUC

The average price target fell 10.0% to JP¥900, with reduced earnings forecasts clearly tied to a lower valuation estimate.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CUC's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 22% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.8% annually. So it's pretty clear that CUC is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CUC. 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 analyst estimates for CUC going out as far as 2029, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for CUC (1 is significant!) that you need to be mindful of.

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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.