What Does The Future Hold For Sumitomo Mitsui Trust Holdings, Inc. (TSE:8309)? These Analysts Have Been Cutting Their Estimates

Market forces rained on the parade of Sumitomo Mitsui Trust Holdings, Inc. (TSE:8309) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the current consensus, from the eight analysts covering Sumitomo Mitsui Trust Holdings, is for revenues of JP¥821b in 2025, which would reflect a painful 25% reduction in Sumitomo Mitsui Trust Holdings' sales over the past 12 months. Before the latest update, the analysts were foreseeing JP¥914b of revenue in 2025. The consensus view seems to have become more pessimistic on Sumitomo Mitsui Trust Holdings, noting the measurable cut to revenue estimates in this update.

View our latest analysis for Sumitomo Mitsui Trust Holdings

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. One more thing stood out to us about these estimates, and it's the idea that Sumitomo Mitsui Trust Holdings' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 32% to the end of 2025. This tops off a historical decline of 0.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 1.0% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Sumitomo Mitsui Trust Holdings to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Sumitomo Mitsui Trust Holdings after today.

Hungry for more information? We have estimates for Sumitomo Mitsui Trust Holdings from its eight analysts out until 2027, and you can see them free on our platform here.

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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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