Sundrug Co.,Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Sundrug Co.,Ltd. (TSE:9989) had a good week, as its shares rose 2.8% to close at JP¥4,197 following the release of its third-quarter results. SundrugLtd reported JP¥208b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥81.73 beat expectations, being 5.5% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SundrugLtd after the latest results.

See our latest analysis for SundrugLtd

Taking into account the latest results, the current consensus from SundrugLtd's eight analysts is for revenues of JP¥866.9b in 2026. This would reflect a solid 9.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 7.8% to JP¥278. Before this earnings report, the analysts had been forecasting revenues of JP¥868.0b and earnings per share (EPS) of JP¥280 in 2026. 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.

The analysts reconfirmed their price target of JP¥4,693, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on SundrugLtd, with the most bullish analyst valuing it at JP¥6,000 and the most bearish at JP¥4,000 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 7.8% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.8% 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¥4,693, 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 forecasts for SundrugLtd going out to 2027, 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 SundrugLtd 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.