Results: Fast Retailing Co., Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

Last week saw the newest interim earnings release from Fast Retailing Co., Ltd. (TSE:9983), an important milestone in the company's journey to build a stronger business. Revenues were JP¥1.8t, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥331, an impressive 26% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Fast Retailing from 16 analysts is for revenues of JP¥3.39t in 2025. If met, it would imply a credible 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are expected to reduce 2.6% to JP¥1,301 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥3.39t and earnings per share (EPS) of JP¥1,301 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Fast Retailing

The analysts reconfirmed their price target of JP¥53,478, showing that the business is executing well and in line with expectations. 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¥47,000. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. 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 2025 expected to display 5.9% growth on an annualised basis. This is compared to a historical growth rate of 11% 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) 6.7% annually. Factoring in the forecast slowdown in growth, it looks like Fast Retailing is forecast to grow at about the same rate as the wider 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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. .

We also provide an overview of the Fast Retailing Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here .

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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.