Maruwa Co.,Ltd. (TSE:5344) investors will be delighted, with the company turning in some strong numbers with its latest results. Statutory revenue of JP¥28b and earnings of JP¥620 both blasted past expectations, beating expectations by 24% and 34%, respectively, ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from MaruwaLtd's five analysts is for revenues of JP¥95.4b in 2027. This reflects a notable 8.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 17% to JP¥2,160. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥92.7b and earnings per share (EPS) of JP¥2,034 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
View our latest analysis for MaruwaLtd
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥74,340, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values MaruwaLtd at JP¥86,000 per share, while the most bearish prices it at JP¥68,000. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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 clear from the latest estimates that MaruwaLtd's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MaruwaLtd to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around MaruwaLtd's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 MaruwaLtd going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with MaruwaLtd .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.