Earnings Miss: Maruwa Co.,Ltd. Missed EPS By 20% And Analysts Are Revising Their Forecasts

As you might know, Maruwa Co.,Ltd. (TSE:5344) last week released its latest half-yearly, and things did not turn out so great for shareholders. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of JP¥16b missed by 15%, and statutory earnings per share of JP¥286 fell short of forecasts by 20%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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¥74.7b in 2026. This reflects an okay 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 8.5% to JP¥1,602. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥77.2b and earnings per share (EPS) of JP¥1,664 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Check out our latest analysis for MaruwaLtd

Despite the cuts to forecast earnings, there was no real change to the JP¥51,460 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. Currently, the most bullish analyst values MaruwaLtd at JP¥57,000 per share, while the most bearish prices it at JP¥46,300. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MaruwaLtd's past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.6% per year. So it's pretty clear that MaruwaLtd is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MaruwaLtd. They also downgraded MaruwaLtd's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at JP¥51,460, with the latest estimates not enough to have an impact on their price targets.

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

Before you take the next step you should know about the 1 warning sign for MaruwaLtd that we have uncovered.

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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.