ZOZO, Inc. (TSE:3092) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

ZOZO, Inc. (TSE:3092) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to JP¥4,792 in the week after its latest half-year results. It was a credible result overall, with revenues of JP¥99b and statutory earnings per share of JP¥33.75 both in line with analyst estimates, showing that ZOZO is executing in line with expectations. 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. 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 ZOZO

After the latest results, the 17 analysts covering ZOZO are now predicting revenues of JP¥215.0b in 2025. If met, this would reflect a reasonable 4.6% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥155, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥215.0b and earnings per share (EPS) of JP¥155 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¥4,270, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values ZOZO at JP¥6,000 per share, while the most bearish prices it at JP¥3,400. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ZOZO's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of ZOZO'shistorical trends, as the 9.3% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth 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 revenues grow 6.8% per year. So although ZOZO is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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. We have forecasts for ZOZO going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for ZOZO that you need to be mindful 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.