Results: Sanwa Holdings Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

Sanwa Holdings Corporation (TSE:5929) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a credible result overall - although revenues of JP¥142b were what the analysts expected, Sanwa Holdings surprised by delivering a (statutory) profit of JP¥33.50 per share, an impressive 48% above what was forecast. 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.

See our latest analysis for Sanwa Holdings

Taking into account the latest results, the consensus forecast from Sanwa Holdings' seven analysts is for revenues of JP¥644.8b in 2025. This reflects an okay 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 4.4% to JP¥196 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥644.4b and earnings per share (EPS) of JP¥195 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of JP¥3,013, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Sanwa Holdings, with the most bullish analyst valuing it at JP¥3,300 and the most bearish at JP¥2,570 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Sanwa Holdings' revenue growth is expected to slow, with the forecast 5.1% annualised growth rate until the end of 2025 being well below the historical 9.3% p.a. growth over the last five years. Compare this to the 61 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.3% per year. So it's pretty clear that, while Sanwa Holdings' revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Sanwa Holdings going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Sanwa Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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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