One Aidma Holdings, Inc. (TSE:7373) Analyst Just Cut Their EPS Forecasts

Today is shaping up negative for Aidma Holdings, Inc. (TSE:7373) shareholders, with the covering analyst delivering a substantial negative revision to this year’s forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

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Following the latest downgrade, the single analyst covering Aidma Holdings provided consensus estimates of JP¥14b revenue in 2027, which would reflect a discernible 3.5% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to descend 15% to JP¥88.80 in the same period. Before this latest update, the analyst had been forecasting revenues of JP¥17b and earnings per share (EPS) of JP¥128 in 2027. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

See our latest analysis for Aidma Holdings

The consensus price target fell 23% to JP¥720, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Aidma Holdings’ past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 3.5% by the end of 2027. This indicates a significant reduction from annual growth of 23% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – Aidma Holdings is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Aidma Holdings’ revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary 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 analyst estimates for Aidma Holdings going out as far as 2029, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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