ABC-Mart,Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

ABC-Mart,Inc. (TSE:2670) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. ABC-MartInc reported JP¥89b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥40.43 beat expectations, being 5.9% higher than what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for ABC-MartInc

After the latest results, the nine analysts covering ABC-MartInc are now predicting revenues of JP¥389.0b in 2026. If met, this would reflect a satisfactory 5.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 3.7% to JP¥186. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥388.3b and earnings per share (EPS) of JP¥184 in 2026. 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¥3,540, suggesting that the company has met expectations in its recent result. 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 ABC-MartInc, with the most bullish analyst valuing it at JP¥3,900 and the most bearish at JP¥3,100 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that ABC-MartInc's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.3% growth on an annualised basis. This is compared to a historical growth rate of 9.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that ABC-MartInc is also expected to grow slower than other industry participants.

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 ABC-MartInc's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥3,540, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for ABC-MartInc going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for ABC-MartInc you should be aware of.

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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.