Here's What Analysts Are Forecasting For Money Forward, Inc. (TSE:3994) After Its Interim Results

Money Forward, Inc. (TSE:3994) last week reported its latest half-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were pretty good overall. While revenues of JP¥23b were in line with analyst predictions, statutory losses were much smaller than expected, with Money Forward losing JP¥19.53 per share. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Money Forward from eight analysts is for revenues of JP¥49.5b in 2025. If met, it would imply a meaningful 13% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 39% to JP¥65.64. Yet prior to the latest earnings, the analysts had been forecasting revenues of JP¥50.4b and losses of JP¥69.69 per share in 2025. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

Check out our latest analysis for Money Forward

There's been no major changes to the consensus price target of JP¥5,925, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Money Forward analyst has a price target of JP¥6,700 per share, while the most pessimistic values it at JP¥4,600. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 28% growth on an annualised basis. That is in line with its 30% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So it's pretty clear that Money Forward is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss 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¥5,925, 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 Money Forward. 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 Money Forward going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Money Forward'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.