Results: Sansan, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
Investors in Sansan, Inc. (TSE:4443) had a good week, as its shares rose 8.5% to close at JP¥1,837 following the release of its full-year results. It looks like a credible result overall - although revenues of JP¥54b were in line with what the analysts predicted, Sansan surprised by delivering a statutory profit of JP¥53.58 per share, a notable 15% above expectations. 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. 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.
Taking into account the latest results, the current consensus from Sansan's nine analysts is for revenues of JP¥63.8b in 2027. This would reflect a decent 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 34% to JP¥71.94. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥64.2b and earnings per share (EPS) of JP¥71.25 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 Sansan
The analysts reconfirmed their price target of JP¥2,063, showing that the business is executing well and in line with expectations. 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 Sansan at JP¥3,000 per share, while the most bearish prices it at JP¥1,400. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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 Sansan's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 24% 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) 10% per year. So it's pretty clear that, while Sansan's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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. 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 in mind, we wouldn't be too quick to come to a conclusion on Sansan. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Sansan going out to 2029, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Sansan that 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.