Analyst Estimates: Here's What Brokers Think Of Sundrug Co.,Ltd. (TSE:9989) After Its Yearly Report

Investors in Sundrug Co.,Ltd. (TSE:9989) had a good week, as its shares rose 3.4% to close at JP¥4,054 following the release of its full-year results. SundrugLtd reported in line with analyst predictions, delivering revenues of JP¥752b and statutory earnings per share of JP¥249, suggesting the business is executing well and in line with its plan. 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. 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 SundrugLtd

Taking into account the latest results, the most recent consensus for SundrugLtd from eight analysts is for revenues of JP¥805.1b in 2025. If met, it would imply a modest 7.1% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 5.1% to JP¥262. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥805.2b and earnings per share (EPS) of JP¥262 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¥4,850, 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. The most optimistic SundrugLtd analyst has a price target of JP¥6,100 per share, while the most pessimistic values it at JP¥4,000. 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 SundrugLtd shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting SundrugLtd's growth to accelerate, with the forecast 7.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SundrugLtd 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¥4,850, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on SundrugLtd. Long-term earnings power is much more important than next year's profits. We have forecasts for SundrugLtd going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for SundrugLtd you should be aware of.

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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