Ain Holdings Inc. Just Missed Earnings - But Analysts Have Updated Their Models
Ain Holdings Inc. (TSE:9627) shareholders are probably feeling a little disappointed, since its shares fell 5.5% to JP¥5,583 in the week after its latest quarterly results. It looks like the results were a bit of a negative overall. While revenues of JP¥177b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.8% to hit JP¥56.18 per share. 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 Ain Holdings after the latest results.
Taking into account the latest results, the current consensus from Ain Holdings' six analysts is for revenues of JP¥721.6b in 2027. This would reflect a reasonable 4.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to drop 12% to JP¥431 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥723.8b and earnings per share (EPS) of JP¥440 in 2027. 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.
See our latest analysis for Ain Holdings
The consensus price target fell 5.1% to JP¥7,033, 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 quarterly results. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Ain Holdings analyst has a price target of JP¥8,700 per share, while the most pessimistic values it at JP¥5,800. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. It's pretty clear that there is an expectation that Ain Holdings' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 5.7% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.6% per year. So it's pretty clear that, while Ain Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Ain Holdings analysts - going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Ain Holdings .
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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.