Sekisui Chemical Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Sekisui Chemical Co., Ltd. (TSE:4204) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at JP¥305b, statutory earnings missed forecasts by 17%, coming in at just JP¥31.61 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.

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Taking into account the latest results, the consensus forecast from Sekisui Chemical's four analysts is for revenues of JP¥1.35t in 2026. This reflects a satisfactory 3.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 17% to JP¥203. Before this earnings report, the analysts had been forecasting revenues of JP¥1.34t and earnings per share (EPS) of JP¥200 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.

Check out our latest analysis for Sekisui Chemical

There were no changes to revenue or earnings estimates or the price target of JP¥2,795, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sekisui Chemical, with the most bullish analyst valuing it at JP¥3,220 and the most bearish at JP¥2,400 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 4.3% growth on an annualised basis. That is in line with its 4.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.4% annually. So it's pretty clear that Sekisui Chemical is expected to grow slower than similar companies in the same 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. The consensus price target held steady at JP¥2,795, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Sekisui Chemical going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Sekisui Chemical that you need to take into consideration.

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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.