SFP Holdings Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Last week saw the newest annual earnings release from SFP Holdings Co., Ltd. (TSE:3198), an important milestone in the company's journey to build a stronger business. SFP Holdings reported JP¥29b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥71.00 beat expectations, being 5.0% higher than what the analyst expected. The analyst 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 analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for SFP Holdings

Taking into account the latest results, the current consensus from SFP Holdings' one analyst is for revenues of JP¥30.2b in 2025. This would reflect a reasonable 3.9% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be JP¥76.40, roughly flat on the last 12 months. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥30.8b and earnings per share (EPS) of JP¥79.90 in 2025. 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.

Despite cutting their earnings forecasts,the analyst has lifted their price target 8.0% to JP¥2,700, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that SFP Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.9% annualised growth until the end of 2025. If achieved, this would be a much better result than the 13% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.2% per year. Although SFP Holdings' revenues are expected to improve, it seems that the analyst is still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for SFP Holdings going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that SFP Holdings is showing 1 warning sign in our investment analysis , 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.