Earnings Update: Sugi Holdings Co.,Ltd. (TSE:7649) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts
Last week, you might have seen that Sugi Holdings Co.,Ltd. (TSE:7649) released its full-year result to the market. The early response was not positive, with shares down 4.0% to JP¥3,529 in the past week. Results were roughly in line with estimates, with revenues of JP¥1.0t and statutory earnings per share of JP¥249. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the nine analysts covering Sugi HoldingsLtd are now predicting revenues of JP¥1.07t in 2027. If met, this would reflect a satisfactory 6.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plummet 24% to JP¥189 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.07t and earnings per share (EPS) of JP¥190 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Sugi HoldingsLtd
The analysts reconfirmed their price target of JP¥3,851, 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. Currently, the most bullish analyst values Sugi HoldingsLtd at JP¥4,330 per share, while the most bearish prices it at JP¥3,350. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sugi HoldingsLtd's past performance and to peers in the same industry. We would highlight that Sugi HoldingsLtd's revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2027 being well below the historical 11% p.a. growth over the last five years. Compare this to the 110 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.2% per year. Factoring in the forecast slowdown in growth, it looks like Sugi HoldingsLtd is forecast to grow at about the same rate as the wider 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥3,851, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Sugi HoldingsLtd going out to 2029, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Sugi HoldingsLtd .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.