Sony Group Corporation Just Recorded A 5.3% Revenue Beat: Here's What Analysts Think

Sony Group Corporation (TSE:6758) defied analyst predictions to release its annual results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 5.3% to hit JP¥13t. Statutory earnings per share (EPS) came in at JP¥788, some 4.0% above whatthe analysts had expected. 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.

See our latest analysis for Sony Group

Taking into account the latest results, the current consensus, from the 24 analysts covering Sony Group, is for revenues of JP¥13t in 2025. This implies a small 3.8% reduction in Sony Group's revenue over the past 12 months. Statutory earnings per share are predicted to increase 3.0% to JP¥819. In the lead-up to this report, the analysts had been modelling revenues of JP¥13t and earnings per share (EPS) of JP¥819 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥16,445. 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 Sony Group, with the most bullish analyst valuing it at JP¥20,300 and the most bearish at JP¥13,200 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 3.8% annualised decline to the end of 2025. That is a notable change from historical growth of 9.5% 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 1.9% 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 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sony Group's revenue is expected to 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 estimates - from multiple Sony Group analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether Sony Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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