The MonotaRO Co., Ltd. (TSE:3064) Third-Quarter Results Are Out And Analysts Have Published New Forecasts
MonotaRO Co., Ltd. (TSE:3064) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. MonotaRO reported in line with analyst predictions, delivering revenues of JP¥94b and statutory earnings per share of JP¥19.03, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the eleven analysts covering MonotaRO are now predicting revenues of JP¥431.5b in 2027. If met, this would reflect a decent 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 15% to JP¥86.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥431.3b and earnings per share (EPS) of JP¥86.46 in 2027. 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.
Check out our latest analysis for MonotaRO
There were no changes to revenue or earnings estimates or the price target of JP¥2,255, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values MonotaRO at JP¥2,900 per share, while the most bearish prices it at JP¥1,700. 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.
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. We would highlight that MonotaRO's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2027 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.3% annually. Even after the forecast slowdown in growth, it seems obvious that MonotaRO is also expected to grow faster than 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. 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¥2,255, 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. We have forecasts for MonotaRO going out to 2028, and you can see them free on our platform here.
We also provide an overview of the MonotaRO Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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