Earnings Miss: Maruwa Co.,Ltd. Missed EPS By 13% And Analysts Are Revising Their Forecasts

Maruwa Co.,Ltd. (TSE:5344) just released its latest first-quarter report and things are not looking great. MaruwaLtd missed earnings this time around, with JP¥17b revenue coming in 4.1% below what the analysts had modelled. Statutory earnings per share (EPS) of JP¥314 also fell short of expectations by 13%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on MaruwaLtd after the latest results.

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Taking into account the latest results, the consensus forecast from MaruwaLtd's five analysts is for revenues of JP¥79.8b in 2026. This reflects a meaningful 9.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 18% to JP¥1,775. Before this earnings report, the analysts had been forecasting revenues of JP¥80.0b and earnings per share (EPS) of JP¥1,790 in 2026. 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.

View our latest analysis for MaruwaLtd

The analysts reconfirmed their price target of JP¥51,300, 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. There are some variant perceptions on MaruwaLtd, with the most bullish analyst valuing it at JP¥59,000 and the most bearish at JP¥45,000 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We can infer from the latest estimates that forecasts expect a continuation of MaruwaLtd'shistorical trends, as the 13% annualised revenue growth to the end of 2026 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.1% annually. So it's pretty clear that MaruwaLtd is forecast to grow substantially faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥51,300, with the latest estimates not enough to have an impact on their price targets.

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 MaruwaLtd going out to 2028, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with MaruwaLtd , and understanding it should be part of your investment process.

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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.