Sugi Holdings Co.,Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

The half-yearly results for Sugi Holdings Co.,Ltd. (TSE:7649) were released last week, making it a good time to revisit its performance. It was not a great result overall. While revenues of JP¥255b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 15% to hit JP¥40.85 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Sugi HoldingsLtd's eleven analysts are now forecasting revenues of JP¥1.01t in 2026. This would be a satisfactory 4.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 8.7% to JP¥248. Before this earnings report, the analysts had been forecasting revenues of JP¥1.01t and earnings per share (EPS) of JP¥249 in 2026. 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.

See our latest analysis for Sugi HoldingsLtd

There were no changes to revenue or earnings estimates or the price target of JP¥3,798, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Sugi HoldingsLtd at JP¥4,400 per share, while the most bearish prices it at JP¥3,350. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Sugi HoldingsLtd'shistorical trends, as the 9.5% annualised revenue growth to the end of 2026 is roughly in line with the 9.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.4% 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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. The consensus price target held steady at JP¥3,798, with the latest estimates not enough to have an impact on their price targets.

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 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Sugi HoldingsLtd you should know about.

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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.