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

Shareholders of Sanwa Holdings Corporation (TSE:5929) will be pleased this week, given that the stock price is up 15% to JP¥4,172 following its latest half-yearly results. The result was positive overall - although revenues of JP¥314b were in line with what the analysts predicted, Sanwa Holdings surprised by delivering a statutory profit of JP¥75.41 per share, modestly greater than expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Sanwa Holdings

Taking into account the latest results, Sanwa Holdings' seven analysts currently expect revenues in 2025 to be JP¥648.1b, approximately in line with the last 12 months. Per-share earnings are expected to swell 11% to JP¥229. Before this earnings report, the analysts had been forecasting revenues of JP¥644.5b and earnings per share (EPS) of JP¥216 in 2025. So the consensus seems to have become somewhat more optimistic on Sanwa Holdings' earnings potential following these results.

The consensus price target was unchanged at JP¥3,464, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Sanwa Holdings at JP¥4,200 per share, while the most bearish prices it at JP¥2,850. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Sanwa Holdings shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Sanwa Holdings' revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2025 being well below the historical 9.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Sanwa Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sanwa Holdings following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sanwa Holdings' revenue is expected to perform worse than the wider 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 estimates - from multiple Sanwa Holdings analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.