Sumitomo Electric Industries, Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Sumitomo Electric Industries, Ltd. (TSE:5802) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of JP¥1.1t, some 7.4% above estimates, and statutory earnings per share (EPS) coming in at JP¥40.73, 28% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Sumitomo Electric Industries

Following last week's earnings report, Sumitomo Electric Industries' eight analysts are forecasting 2025 revenues to be JP¥4.57t, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 16% to JP¥193 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥4.57t and earnings per share (EPS) of JP¥193 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥2,765, suggesting that the company has met expectations in its recent result. 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 Sumitomo Electric Industries, with the most bullish analyst valuing it at JP¥3,000 and the most bearish at JP¥2,400 per share. This is a very narrow spread of estimates, implying either that Sumitomo Electric Industries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Sumitomo Electric Industries' revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2025 being well below the historical 9.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Sumitomo Electric Industries is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Sumitomo Electric Industries analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Sumitomo Electric Industries is showing 1 warning sign in our investment analysis , 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com