Results: Sugi Holdings Co.,Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

Investors in Sugi Holdings Co.,Ltd. (TSE:7649) had a good week, as its shares rose 6.2% to close at JP¥2,645 following the release of its half-yearly results. It looks like a credible result overall - although revenues of JP¥414b were in line with what the analysts predicted, Sugi HoldingsLtd surprised by delivering a statutory profit of JP¥38.33 per share, a notable 14% above expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Sugi HoldingsLtd

Taking into account the latest results, the consensus forecast from Sugi HoldingsLtd's six analysts is for revenues of JP¥821.8b in 2025. This reflects a satisfactory 3.8% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥139, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥821.5b and earnings per share (EPS) of JP¥139 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,795. 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. Currently, the most bullish analyst values Sugi HoldingsLtd at JP¥3,400 per share, while the most bearish prices it at JP¥2,500. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sugi HoldingsLtd's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.7% growth on an annualised basis. That is in line with its 7.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.1% annually. So although Sugi HoldingsLtd is expected to maintain its revenue growth rate, it's definitely expected 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 Sugi HoldingsLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Sugi HoldingsLtd analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Sugi HoldingsLtd Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.