Earnings Miss: PAL GROUP Holdings CO., LTD. Missed EPS By 13% And Analysts Are Revising Their Forecasts

It’s been a mediocre week for PAL GROUP Holdings CO., LTD. (TSE:2726) shareholders, with the stock dropping 13% to JP¥2,035 in the week since its latest half-yearly results. It was not a great result overall. While revenues of JP¥58b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit JP¥22.76 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the three analysts covering PAL GROUP Holdings are now predicting revenues of JP¥234.0b in 2026. If met, this would reflect a credible 4.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 30% to JP¥100. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥233.8b and earnings per share (EPS) of JP¥105 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for PAL GROUP Holdings

Despite cutting their earnings forecasts,the analysts have lifted their price target 17% to JP¥2,400, suggesting that these impacts are not expected to weigh on the stock’s value in the long term. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on PAL GROUP Holdings, with the most bullish analyst valuing it at JP¥2,750 and the most bearish at JP¥1,875 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It’s pretty clear that there is an expectation that PAL GROUP Holdings’ revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 9.5% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% annually. So it’s pretty clear that, while PAL GROUP Holdings’ revenue growth is expected to slow, it’s still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 PAL GROUP Holdings going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for PAL GROUP Holdings that you need to take into consideration.

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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.