Analyst Estimates: Here's What Brokers Think Of SFP Holdings Co., Ltd. (TSE:3198) After Its Annual Report

Investors in SFP Holdings Co., Ltd. (TSE:3198) had a good week, as its shares rose 7.5% to close at JP¥2,200 following the release of its yearly results. Revenues of JP¥30b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥65.15, missing estimates by 2.9%. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on SFP Holdings after the latest results.

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After the latest results, the sole analyst covering SFP Holdings are now predicting revenues of JP¥32.5b in 2026. If met, this would reflect a satisfactory 6.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 15% to JP¥74.60. Before this earnings report, the analyst had been forecasting revenues of JP¥32.3b and earnings per share (EPS) of JP¥79.80 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a small dip in their earnings per share forecasts.

Check out our latest analysis for SFP Holdings

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥2,400, with the analyst clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

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 analyst is definitely expecting SFP Holdings' growth to accelerate, with the forecast 6.9% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.2% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that SFP Holdings is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SFP Holdings. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥2,400, with the latest estimates not enough to have an impact on their price target.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

You can also see our analysis of SFP Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.