Analysts Are Updating Their Sohgo Security Services Co.,Ltd. (TSE:2331) Estimates After Its Third-Quarter Results

It's been a good week for Sohgo Security Services Co.,Ltd. (TSE:2331) shareholders, because the company has just released its latest third-quarter results, and the shares gained 2.7% to JP¥1,071. It was a credible result overall, with revenues of JP¥137b and statutory earnings per share of JP¥54.34 both in line with analyst estimates, showing that Sohgo Security ServicesLtd is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Sohgo Security ServicesLtd

Following the latest results, Sohgo Security ServicesLtd's six analysts are now forecasting revenues of JP¥582.3b in 2026. This would be a credible 7.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 18% to JP¥64.30. In the lead-up to this report, the analysts had been modelling revenues of JP¥579.5b and earnings per share (EPS) of JP¥64.58 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,240. 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. The most optimistic Sohgo Security ServicesLtd analyst has a price target of JP¥1,400 per share, while the most pessimistic values it at JP¥1,130. This is a very narrow spread of estimates, implying either that Sohgo Security ServicesLtd is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sohgo Security ServicesLtd's past performance and to peers in the same industry. It's clear from the latest estimates that Sohgo Security ServicesLtd's rate of growth is expected to accelerate meaningfully, with the forecast 5.8% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sohgo Security ServicesLtd to grow faster than the wider 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥1,240, with the latest estimates not enough to have an impact on their price targets.

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 Sohgo Security ServicesLtd going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Sohgo Security ServicesLtd's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.