Maruwa Co.,Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Maruwa Co.,Ltd. (TSE:5344) last week released its latest quarterly, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at JP¥19b, statutory earnings missed forecasts by 12%, coming in at just JP¥362 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from MaruwaLtd's five analysts is for revenues of JP¥93.3b in 2027. This would reflect a major 22% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 33% to JP¥2,023. In the lead-up to this report, the analysts had been modelling revenues of JP¥89.3b and earnings per share (EPS) of JP¥1,988 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

See our latest analysis for MaruwaLtd

Even though revenue forecasts increased, there was no change to the consensus price target of JP¥80,820, suggesting the analysts are focused on earnings as the driver of value creation. 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. The most optimistic MaruwaLtd analyst has a price target of JP¥89,000 per share, while the most pessimistic values it at JP¥68,000. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting MaruwaLtd is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting MaruwaLtd's growth to accelerate, with the forecast 30% annualised growth to the end of 2027 ranking favourably alongside historical growth of 9.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.2% 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 most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

Before you take the next step you should know about the 1 warning sign for MaruwaLtd that we have uncovered.

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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.