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

It's been a good week for Sanwa Holdings Corporation (TSE:5929) shareholders, because the company has just released its latest yearly results, and the shares gained 7.4% to JP¥5,220. The result was positive overall - although revenues of JP¥662b were in line with what the analysts predicted, Sanwa Holdings surprised by delivering a statutory profit of JP¥265 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, Sanwa Holdings' seven analysts currently expect revenues in 2026 to be JP¥665.9b, approximately in line with the last 12 months. Statutory per share are forecast to be JP¥268, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥672.4b and earnings per share (EPS) of JP¥270 in 2026. 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.

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The analysts reconfirmed their price target of JP¥4,950, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Sanwa Holdings, with the most bullish analyst valuing it at JP¥5,800 and the most bearish at JP¥4,100 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sanwa Holdings' revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2026 being well below the historical 10% 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 3.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sanwa Holdings.

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. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Sanwa Holdings going out to 2028, 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.