J. Front Retailing Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders of J. Front Retailing Co., Ltd. (TSE:3086) will be pleased this week, given that the stock price is up 16% to JP¥1,903 following its latest first-quarter results. It looks like a credible result overall - although revenues of JP¥101b were what the analysts expected, J. Front Retailing surprised by delivering a (statutory) profit of JP¥43.11 per share, an impressive 28% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for J. Front Retailing

Taking into account the latest results, J. Front Retailing's five analysts currently expect revenues in 2025 to be JP¥423.0b, approximately in line with the last 12 months. Statutory earnings per share are expected to sink 14% to JP¥116 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥425.6b and earnings per share (EPS) of JP¥97.34 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice increase in earnings per share expectations following these results.

There's been no major changes to the consensus price target of JP¥1,902, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic J. Front Retailing analyst has a price target of JP¥2,000 per share, while the most pessimistic values it at JP¥1,800. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that J. Front Retailing's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.6% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.9% a year 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 5.8% per year. Although J. Front Retailing's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around J. Front Retailing'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 J. Front Retailing's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥1,902, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple J. Front Retailing analysts - 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 3 warning signs for J. Front Retailing (1 doesn't sit too well with us) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com