Sugi Holdings Co.,Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Sugi Holdings Co.,Ltd. (TSE:7649) shareholders are probably feeling a little disappointed, since its shares fell 3.2% to JP¥2,214 in the week after its latest first-quarter results. It looks like the results were a bit of a negative overall. While revenues of JP¥201b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.2% to hit JP¥33.84 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sugi HoldingsLtd after the latest results.

See our latest analysis for Sugi HoldingsLtd

Taking into account the latest results, the most recent consensus for Sugi HoldingsLtd from six analysts is for revenues of JP¥817.8b in 2025. If met, it would imply a reasonable 6.5% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 11% to JP¥139. In the lead-up to this report, the analysts had been modelling revenues of JP¥817.8b and earnings per share (EPS) of JP¥139 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.

There were no changes to revenue or earnings estimates or the price target of JP¥2,773, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Sugi HoldingsLtd analyst has a price target of JP¥3,400 per share, while the most pessimistic values 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Sugi HoldingsLtd'shistorical trends, as the 8.8% annualised revenue growth to the end of 2025 is roughly in line with the 7.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.4% annually. So it's pretty clear that Sugi HoldingsLtd is forecast to grow substantially faster than its 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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Sugi HoldingsLtd analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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

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