Sumitomo Electric Industries, Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Investors in Sumitomo Electric Industries, Ltd. (TSE:5802) had a good week, as its shares rose 2.9% to close at JP¥2,911 following the release of its quarterly results. It was not a great result overall. Although revenues beat expectations, hitting JP¥1.2t, statutory earnings missed analyst forecasts by 16%, coming in at just JP¥48.63 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Sumitomo Electric Industries

Following last week's earnings report, Sumitomo Electric Industries' seven analysts are forecasting 2026 revenues to be JP¥4.62t, approximately in line with the last 12 months. Statutory per share are forecast to be JP¥240, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥4.65t and earnings per share (EPS) of JP¥237 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,299. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Sumitomo Electric Industries analyst has a price target of JP¥3,850 per share, while the most pessimistic values it at JP¥3,000. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sumitomo Electric Industries is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sumitomo Electric Industries' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.09% by the end of 2026. This indicates a significant reduction from annual growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.5% per year. It's pretty clear that Sumitomo Electric Industries' revenues are expected to perform substantially worse than the wider industry.

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. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sumitomo Electric Industries going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Sumitomo Electric Industries has 2 warning signs 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.