Earnings Update: MonotaRO Co., Ltd. (TSE:3064) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

It's been a good week for MonotaRO Co., Ltd. (TSE:3064) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.9% to JP¥2,502. MonotaRO reported in line with analyst predictions, delivering revenues of JP¥72b and statutory earnings per share of JP¥12.86, suggesting the business is executing well and in line with its plan. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for MonotaRO

After the latest results, the nine analysts covering MonotaRO are now predicting revenues of JP¥327.7b in 2025. If met, this would reflect a meaningful 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 23% to JP¥60.73. In the lead-up to this report, the analysts had been modelling revenues of JP¥326.2b and earnings per share (EPS) of JP¥60.26 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of JP¥2,044, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic MonotaRO analyst has a price target of JP¥2,800 per share, while the most pessimistic values it at JP¥1,500. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of MonotaRO'shistorical trends, as the 14% annualised revenue growth to the end of 2025 is roughly in line with the 16% 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 0.5% per year. So although MonotaRO is expected to maintain its revenue growth rate, it's definitely expected 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥2,044, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple MonotaRO analysts - going out to 2026, and you can see them free on our platform here.

You can also see our analysis of MonotaRO's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.