Sony Group Corporation Just Recorded A 41% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in Sony Group Corporation (TSE:6758) had a good week, as its shares rose 7.1% to close at JP¥2,921 following the release of its interim results. It looks like a credible result overall - although revenues of JP¥5.9t were what the analysts expected, Sony Group surprised by delivering a (statutory) profit of JP¥55.95 per share, an impressive 41% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Sony Group

Taking into account the latest results, the 21 analysts covering Sony Group provided consensus estimates of JP¥13t revenue in 2025, which would reflect a measurable 4.0% decline over the past 12 months. Statutory earnings per share are expected to dip 7.6% to JP¥172 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥13t and earnings per share (EPS) of JP¥168 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥3,407, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Sony Group at JP¥4,260 per share, while the most bearish prices it at JP¥2,620. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Sony Group shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 7.8% annualised decline to the end of 2025. That is a notable change from historical growth of 10% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Sony Group is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sony Group'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.

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 Sony Group going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Sony Group that you need to take into consideration.

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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.