Sugi Holdings Co.,Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Sugi Holdings Co.,Ltd. (TSE:7649) came out with its half-yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a credible result overall - although revenues of JP¥541b were what the analysts expected, Sugi HoldingsLtd surprised by delivering a (statutory) profit of JP¥33.24 per share, an impressive 37% above what was forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Sugi HoldingsLtd's seven analysts is for revenues of JP¥1.10t in 2027. This would reflect an okay 4.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 5.7% to JP¥83.37. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.09t and earnings per share (EPS) of JP¥87.02 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
Check out our latest analysis for Sugi HoldingsLtd
It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥1,646, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Sugi HoldingsLtd, with the most bullish analyst valuing it at JP¥1,900 and the most bearish at JP¥1,300 per share. 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. It's pretty clear that there is an expectation that Sugi HoldingsLtd's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 8.6% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.5% per year. So it's pretty clear that, while Sugi HoldingsLtd's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sugi HoldingsLtd. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sugi HoldingsLtd going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Sugi HoldingsLtd has 1 warning sign we think you should be aware of.
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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.