Results: ABC-Mart,Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, ABC-Mart,Inc. (TSE:2670) recently reported its interim numbers. It looks like a credible result overall - although revenues of JP¥188b were what the analysts expected, ABC-MartInc surprised by delivering a (statutory) profit of JP¥44.57 per share, an impressive 22% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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.

Check out our latest analysis for ABC-MartInc

Taking into account the latest results, the consensus forecast from ABC-MartInc's nine analysts is for revenues of JP¥370.6b in 2025. This reflects an okay 2.1% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥175, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥368.2b and earnings per share (EPS) of JP¥171 in 2025. So the consensus seems to have become somewhat more optimistic on ABC-MartInc's earnings potential following these results.

The consensus price target was unchanged at JP¥3,407, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic ABC-MartInc analyst has a price target of JP¥3,800 per share, while the most pessimistic values it at JP¥3,100. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. We would highlight that ABC-MartInc's revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2025 being well below the historical 7.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ABC-MartInc's earnings potential next year. 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.

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..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for ABC-MartInc that 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.