Fast Retailing Co., Ltd. (TSE:9983) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Fast Retailing reported JP¥4.0t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥1,768 beat expectations, being 6.0% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Fast Retailing's 16 analysts are now forecasting revenues of JP¥4.43t in 2027. This would be a meaningful 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.7% to JP¥1,886. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥4.43t and earnings per share (EPS) of JP¥1,890 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 Fast Retailing
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥86,825. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Fast Retailing, with the most bullish analyst valuing it at JP¥100,000 and the most bearish at JP¥66,200 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. We can infer from the latest estimates that forecasts expect a continuation of Fast Retailing'shistorical trends, as the 12% annualised revenue growth to the end of 2027 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.7% annually. So although Fast Retailing is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
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. The consensus price target held steady at JP¥86,825, with the latest estimates not enough to have an impact on their price targets.
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. At Simply Wall St, we have a full range of analyst estimates for Fast Retailing going out to 2029, and you can see them free on our platform here..
You still need to take note of risks, for example - Fast Retailing has 1 warning sign we think you should be aware 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.