SBI Sumishin Net Bank, Ltd. (TSE:7163) Analysts Just Slashed This Year's Revenue Estimates By 22%

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. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following this downgrade, SBI Sumishin Net Bank's five analysts are forecasting 2025 revenues to be JP¥110b, approximately in line with the last 12 months. Statutory earnings per share are presumed to ascend 12% to JP¥185. Prior to this update, the analysts had been forecasting revenues of JP¥140b and earnings per share (EPS) of JP¥188 in 2025. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a pretty serious reduction to revenues and reconfirming their earnings per share estimates.

View our latest analysis for SBI Sumishin Net Bank

The consensus has reconfirmed its price target of JP¥2,687, showing that the analysts don't expect weaker sales expectationsthis year to have a material impact on SBI Sumishin Net Bank's market value.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that SBI Sumishin Net Bank's revenue growth is expected to slow, with the forecast 0.9% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last three years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 2.1% annually. So it's clear that despite the slowdown in growth, SBI Sumishin Net Bank is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider market. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple SBI Sumishin Net Bank analysts - going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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