Mani, Inc. (TSE:7730) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

It's been a mediocre week for Mani, Inc. (TSE:7730) shareholders, with the stock dropping 14% to JP¥1,562 in the week since its latest first-quarter results. Results were roughly in line with estimates, with revenues of JP¥7.7b and statutory earnings per share of JP¥63.82. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Mani after the latest results.

View our latest analysis for Mani

Taking into account the latest results, the most recent consensus for Mani from five analysts is for revenues of JP¥30.7b in 2025. If met, it would imply an okay 5.8% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 3.4% to JP¥66.26. Before this earnings report, the analysts had been forecasting revenues of JP¥30.8b and earnings per share (EPS) of JP¥66.76 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,230. 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 Mani, with the most bullish analyst valuing it at JP¥2,520 and the most bearish at JP¥2,000 per share. This is a very narrow spread of estimates, implying either that Mani is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mani's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Mani's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.8% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this to the 40 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.1% per year. So it's pretty clear that, while Mani's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Mani going out to 2027, 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 2 warning signs with Mani , and understanding these should be part of your investment process.

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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.