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

There's been a notable change in appetite for Maruwa Co.,Ltd. (TSE:5344) shares in the week since its quarterly report, with the stock down 20% to JP¥38,320. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at JP¥18b, statutory earnings beat expectations by a notable 13%, coming in at JP¥448 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.

View our latest analysis for MaruwaLtd

Following the latest results, MaruwaLtd's five analysts are now forecasting revenues of JP¥85.4b in 2026. This would be a substantial 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 28% to JP¥1,932. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥86.7b and earnings per share (EPS) of JP¥1,969 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.

The analysts reconfirmed their price target of JP¥54,000, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic MaruwaLtd analyst has a price target of JP¥55,000 per share, while the most pessimistic values it at JP¥52,000. This is a very narrow spread of estimates, implying either that MaruwaLtd is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting MaruwaLtd's growth to accelerate, with the forecast 18% annualised growth to the end of 2026 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that MaruwaLtd is expected to grow much 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. 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.

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. We have estimates - from multiple MaruwaLtd analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for MaruwaLtd that you need to take into consideration.

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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.