ABC-Mart,Inc. (TSE:2670) Just Released Its Yearly Earnings: Here's What Analysts Think

It's been a good week for ABC-Mart,Inc. (TSE:2670) shareholders, because the company has just released its latest full-year results, and the shares gained 6.2% to JP¥3,096. The result was positive overall - although revenues of JP¥344b were in line with what the analysts predicted, ABC-MartInc surprised by delivering a statutory profit of JP¥162 per share, modestly greater than 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ABC-MartInc after the latest results.

View our latest analysis for ABC-MartInc

After the latest results, the nine analysts covering ABC-MartInc are now predicting revenues of JP¥359.9b in 2025. If met, this would reflect a modest 4.6% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥162, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥359.3b and earnings per share (EPS) of JP¥162 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.

The analysts reconfirmed their price target of JP¥3,117, showing that the business is executing well and in line with expectations. 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¥3,800 and the most bearish at JP¥2,600 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ABC-MartInc's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of ABC-MartInc'shistorical trends, as the 4.6% annualised revenue growth to the end of 2025 is roughly in line with the 4.7% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.7% annually. So although ABC-MartInc is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider 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. 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. 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 ABC-MartInc going out to 2027, and you can see them free on our platform here..

We also provide an overview of the ABC-MartInc Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.