Fast Retailing Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Fast Retailing Co., Ltd. (TSE:9983) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of JP¥1.0t, some 6.1% above estimates, and statutory earnings per share (EPS) coming in at JP¥478, 26% ahead of expectations. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following the latest results, Fast Retailing's 17 analysts are now forecasting revenues of JP¥4.35t in 2027. This would be a solid 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 9.3% to JP¥1,852. Before this earnings report, the analysts had been forecasting revenues of JP¥4.29t and earnings per share (EPS) of JP¥1,806 in 2027. So the consensus seems to have become somewhat more optimistic on Fast Retailing's earnings potential following these results.

View our latest analysis for Fast Retailing

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.1% to JP¥83,500. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. 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¥64,000 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fast Retailing's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.8% annually. It's clear that while Fast Retailing's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Fast Retailing following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Fast Retailing going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Fast Retailing that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.