Marui Group Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Marui Group Co., Ltd. (TSE:8252) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of JP¥60b, some 4.3% above estimates, and statutory earnings per share (EPS) coming in at JP¥33.06, 24% 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Marui Group

Following the latest results, Marui Group's eight analysts are now forecasting revenues of JP¥250.9b in 2025. This would be a credible 3.9% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥143, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥251.0b and earnings per share (EPS) of JP¥143 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.

There were no changes to revenue or earnings estimates or the price target of JP¥2,663, suggesting that the company has met expectations in its recent result. 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 Marui Group at JP¥3,000 per share, while the most bearish prices it at JP¥2,500. This is a very narrow spread of estimates, implying either that Marui Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Marui Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.3% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.1% annual decline 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 revenue grow 6.1% per year. So while Marui Group's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥2,663, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Marui Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Marui Group going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Marui Group (including 1 which is a bit unpleasant) .

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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.