Here's What Analysts Are Forecasting For Rakuten Group, Inc. (TSE:4755) After Its Yearly Results

Last week, you might have seen that Rakuten Group, Inc. (TSE:4755) released its yearly result to the market. The early response was not positive, with shares down 3.5% to JP¥944 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at JP¥2.3t, statutory losses exploded to JP¥75.61 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Rakuten Group

Taking into account the latest results, the most recent consensus for Rakuten Group from 13 analysts is for revenues of JP¥2.46t in 2025. If met, it would imply a satisfactory 7.8% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 90% to JP¥7.65. Before this latest report, the consensus had been expecting revenues of JP¥2.46t and JP¥10.92 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very favorable reduction to losses per share in particular.

The average price target held steady at JP¥983, seeming to indicate that business is performing 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. The most optimistic Rakuten Group analyst has a price target of JP¥1,200 per share, while the most pessimistic values it at JP¥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 Rakuten Group's past performance and to peers in the same industry. We would highlight that Rakuten Group's revenue growth is expected to slow, with the forecast 7.8% annualised growth rate until the end of 2025 being well below the historical 11% 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 5.3% annually. So it's pretty clear that, while Rakuten Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥983, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Rakuten Group. 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 Rakuten Group going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Rakuten Group's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.