Results: Fast Retailing Co., Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates

Fast Retailing Co., Ltd. (TSE:9983) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of JP¥768b, some 3.0% above estimates, and statutory earnings per share (EPS) coming in at JP¥381, 37% ahead of expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Fast Retailing

Following the latest results, Fast Retailing's 16 analysts are now forecasting revenues of JP¥3.32t in 2025. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 3.2% to JP¥1,169 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥3.32t and earnings per share (EPS) of JP¥1,158 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.

The analysts reconfirmed their price target of JP¥45,224, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Fast Retailing analyst has a price target of JP¥51,000 per share, while the most pessimistic values it at JP¥40,000. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Fast Retailing is an easy business to forecast or the the analysts are all using similar assumptions.

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 clear from the latest estimates that Fast Retailing's rate of growth is expected to accelerate meaningfully, with the forecast 8.7% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.8% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fast Retailing is expected to grow at about the same rate as 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥45,224, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Fast Retailing analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Fast Retailing .

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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.

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