Sekisui Chemical Co., Ltd. Just Recorded A 89% EPS Beat: Here's What Analysts Are Forecasting Next

Sekisui Chemical Co., Ltd. (TSE:4204) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.0% to hit JP¥299b. Sekisui Chemical also reported a statutory profit of JP¥56.47, which was an impressive 89% above what the analysts had 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.

View our latest analysis for Sekisui Chemical

Taking into account the latest results, the most recent consensus for Sekisui Chemical from four analysts is for revenues of JP¥1.31t in 2025. If met, it would imply a satisfactory 3.4% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 2.3% to JP¥190. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.31t and earnings per share (EPS) of JP¥188 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.

The analysts reconfirmed their price target of JP¥2,433, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Sekisui Chemical analyst has a price target of JP¥2,570 per share, while the most pessimistic values it at JP¥2,300. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Sekisui Chemical's growth to accelerate, with the forecast 4.6% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sekisui Chemical to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still 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 in mind, we wouldn't be too quick to come to a conclusion on Sekisui Chemical. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Sekisui Chemical going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Sekisui Chemical that you need to be mindful 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com