The Sansan, Inc. (TSE:4443) Interim Results Are Out And Analysts Have Published New Forecasts

It's been a good week for Sansan, Inc. (TSE:4443) shareholders, because the company has just released its latest interim results, and the shares gained 6.9% to JP¥1,918. Revenues of JP¥13b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥13.14, missing estimates by 2.4%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sansan after the latest results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the current consensus from Sansan's ten analysts is for revenues of JP¥53.6b in 2026. This would reflect a decent 10% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 174% to JP¥44.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥53.5b and earnings per share (EPS) of JP¥41.06 in 2026. So the consensus seems to have become somewhat more optimistic on Sansan's earnings potential following these results.

View our latest analysis for Sansan

The consensus price target was unchanged at JP¥2,425, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Sansan at JP¥3,400 per share, while the most bearish prices it at JP¥2,000. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Sansan'shistorical trends, as the 22% annualised revenue growth to the end of 2026 is roughly in line with the 24% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Sansan is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sansan's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still 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 forecasts for Sansan 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 2 warning signs with Sansan , and understanding these should be part of your investment process.

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.