ZOZO, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

ZOZO, Inc. (TSE:3092) shareholders are probably feeling a little disappointed, since its shares fell 7.9% to JP¥1,161 in the week after its latest half-yearly results. It looks like the results were a bit of a negative overall. While revenues of JP¥111b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.1% to hit JP¥11.29 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is 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.

Taking into account the latest results, the consensus forecast from ZOZO's 15 analysts is for revenues of JP¥241.1b in 2027. This reflects a modest 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.7% to JP¥58.11. In the lead-up to this report, the analysts had been modelling revenues of JP¥241.1b and earnings per share (EPS) of JP¥58.21 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.

Check out our latest analysis for ZOZO

The analysts reconfirmed their price target of JP¥1,263, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on ZOZO, with the most bullish analyst valuing it at JP¥1,550 and the most bearish at JP¥1,000 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ZOZO shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 6.4% growth on an annualised basis. That is in line with its 7.8% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.8% per year. So although ZOZO is expected to maintain its revenue growth rate, it's forecast to grow slower 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ZOZO's revenue is expected to perform worse 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 ZOZO going out to 2029, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with ZOZO , and understanding it should be part of your investment process.

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