Sysmex Corporation (TSE:6869) Annual Results: Here's What Analysts Are Forecasting For This Year
Last week saw the newest yearly earnings release from Sysmex Corporation (TSE:6869), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of JP¥500b were in line with what the analysts predicted, Sysmex surprised by delivering a statutory profit of JP¥56.89 per share, modestly greater than expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Sysmex's 14 analysts are now forecasting revenues of JP¥530.0b in 2027. This would be a modest 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 17% to JP¥67.35. Before this earnings report, the analysts had been forecasting revenues of JP¥536.2b and earnings per share (EPS) of JP¥77.07 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
View our latest analysis for Sysmex
The consensus price target held steady at JP¥1,736, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Sysmex, with the most bullish analyst valuing it at JP¥3,300 and the most bearish at JP¥1,300 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Sysmex's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 9.9% over the past five years. Compare this to the 36 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.4% per year. Factoring in the forecast slowdown in growth, it looks like Sysmex 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 Sysmex going out to 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Sysmex you should know about.
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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.