Sharp Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a good week for Sharp Corporation (TSE:6753) shareholders, because the company has just released its latest interim results, and the shares gained 3.4% to JP¥846. It looks like a credible result overall - although revenues of JP¥478b were what the analysts expected, Sharp surprised by delivering a (statutory) profit of JP¥28.10 per share, an impressive 105% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the recent earnings report, the consensus from seven analysts covering Sharp is for revenues of JP¥1.92t in 2026. This implies a small 4.7% decline in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥90.77, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.92t and earnings per share (EPS) of JP¥63.52 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

View our latest analysis for Sharp

There's been no major changes to the consensus price target of JP¥664, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Sharp, with the most bullish analyst valuing it at JP¥890 and the most bearish at JP¥340 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past five years, revenues have declined around 2.8% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 9.2% decline in revenue until the end of 2026. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 1.5% per year. So while a broad number of companies are forecast to grow, unfortunately Sharp is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sharp's earnings potential next year. 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.

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 forecasts for Sharp going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Sharp that we have uncovered.

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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.