The Sekisui House, Ltd. (TSE:1928) Annual Results Are Out And Analysts Have Published New Forecasts

As you might know, Sekisui House, Ltd. (TSE:1928) recently reported its annual numbers. Sekisui House reported JP¥4.1t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥336 beat expectations, being 2.1% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Sekisui House

Following the latest results, Sekisui House's nine analysts are now forecasting revenues of JP¥4.39t in 2026. This would be a solid 8.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 11% to JP¥373. Before this earnings report, the analysts had been forecasting revenues of JP¥4.41t and earnings per share (EPS) of JP¥375 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.

The analysts reconfirmed their price target of JP¥4,199, 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 Sekisui House, with the most bullish analyst valuing it at JP¥4,500 and the most bearish at JP¥3,900 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sekisui House is an easy business to forecast or the the analysts are all using similar assumptions.

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 can infer from the latest estimates that forecasts expect a continuation of Sekisui House'shistorical trends, as the 8.2% annualised revenue growth to the end of 2026 is roughly in line with the 9.5% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 0.5% annually. So it's pretty clear that Sekisui House is forecast to grow substantially faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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. We have forecasts for Sekisui House going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Sekisui House (1 can't be ignored) you should be aware of.

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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.