ZOZO, Inc. Just Recorded A 9.5% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in ZOZO, Inc. (TSE:3092) had a good week, as its shares rose 7.4% to close at JP¥5,317 following the release of its quarterly results. ZOZO reported JP¥62b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥49.88 beat expectations, being 9.5% higher than what the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for ZOZO

Taking into account the latest results, the consensus forecast from ZOZO's 18 analysts is for revenues of JP¥229.2b in 2026. This reflects a solid 8.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 7.2% to JP¥173. Before this earnings report, the analysts had been forecasting revenues of JP¥229.0b and earnings per share (EPS) of JP¥171 in 2026. 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¥4,496, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on ZOZO, with the most bullish analyst valuing it at JP¥6,300 and the most bearish at JP¥3,000 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that ZOZO's revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. Compare this to the 156 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.9% per year. So it's pretty clear that, while ZOZO'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.

With that in mind, we wouldn't be too quick to come to a conclusion on ZOZO. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ZOZO going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for ZOZO that you should be aware of.

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

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.