Here's What Analysts Are Forecasting For Fast Retailing Co., Ltd. (TSE:9983) After Its Third-Quarter Results

Shareholders might have noticed that Fast Retailing Co., Ltd. (TSE:9983) filed its quarterly result this time last week. The early response was not positive, with shares down 7.2% to JP¥44,140 in the past week. Fast Retailing reported JP¥827b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥344 beat expectations, being 3.3% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fast Retailing after the latest results.

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Taking into account the latest results, the most recent consensus for Fast Retailing from 15 analysts is for revenues of JP¥3.67t in 2026. If met, it would imply a meaningful 9.4% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.3% to JP¥1,406. Before this earnings report, the analysts had been forecasting revenues of JP¥3.68t and earnings per share (EPS) of JP¥1,405 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.

Check out our latest analysis for Fast Retailing

There were no changes to revenue or earnings estimates or the price target of JP¥53,684, suggesting that the company has met expectations in its recent result. 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 Fast Retailing analyst has a price target of JP¥60,000 per share, while the most pessimistic values it at JP¥48,000. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Fast Retailing's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.4% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.4% annually. So it's pretty clear that, while Fast Retailing's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Fast Retailing going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Fast Retailing'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.