West Holdings Corporation Recorded A 54% Miss On Revenue: Analysts Are Revisiting Their Models

It's been a sad week for West Holdings Corporation (TSE:1407), who've watched their investment drop 19% to JP¥1,403 in the week since the company reported its third-quarter result. West Holdings reported a serious miss, with revenue of JP¥7.1b falling a huge 54% short of analyst estimates. The bright side is that statutory earnings per share of JP¥167 were in line with forecasts. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from West Holdings' four analysts is for revenues of JP¥60.9b in 2026. This would reflect a substantial 43% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 66% to JP¥206. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥65.4b and earnings per share (EPS) of JP¥243 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

See our latest analysis for West Holdings

It'll come as no surprise then, to learn that the analysts have cut their price target 10% to JP¥3,360. 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 West Holdings, with the most bullish analyst valuing it at JP¥5,000 and the most bearish at JP¥2,410 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that West Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 33% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 8.8% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 2.5% annually. So it looks like West Holdings is expected to grow faster than its competitors, at least for a while.

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. They also downgraded West Holdings' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of West Holdings' future valuation.

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 West Holdings going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for West Holdings (1 can't be ignored!) that we have uncovered.