Analysts Just Made A Major Revision To Their SBI Sumishin Net Bank, Ltd. (TSE:7163) Revenue Forecasts

The analysts covering SBI Sumishin Net Bank, Ltd. (TSE:7163) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the five analysts covering SBI Sumishin Net Bank provided consensus estimates of JP¥81b revenue in 2025, which would reflect a sizeable 25% decline on its sales over the past 12 months. Statutory earnings per share are presumed to expand 13% to JP¥186. Before this latest update, the analysts had been forecasting revenues of JP¥110b and earnings per share (EPS) of JP¥185 in 2025. Indeed we can see that the consensus opinion has undergone some fundamental changes following the recent consensus updates, with a pretty serious reduction to revenues and some minor tweaks to earnings numbers.

Check out our latest analysis for SBI Sumishin Net Bank

The consensus price target rose 5.5% to JP¥2,834, with the analysts apparently satisfied with the business performance despite lower revenue forecasts.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SBI Sumishin Net Bank's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 25% by the end of 2025. This indicates a significant reduction from annual growth of 13% over the last three years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.7% per year. The forecasts do look bearish for SBI Sumishin Net Bank, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Unfortunately they also cut their revenue estimates for this year, and they expect sales to lag the wider market. That said, earnings per share are more important for creating value for shareholders. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of SBI Sumishin Net Bank going forwards.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for SBI Sumishin Net Bank going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.

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