SBI ARUHI Corporation Just Missed Earnings - But Analysts Have Updated Their Models

SBI ARUHI Corporation (TSE:7198) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results overall were not great, with earnings of JP¥39.43 per share falling drastically short of analyst expectations. Meanwhile revenues hit JP¥20b and were slightly better than forecasts. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for SBI ARUHI

Taking into account the latest results, the current consensus from SBI ARUHI's two analysts is for revenues of JP¥27.2b in 2025. This would reflect a substantial 34% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 40% to JP¥47.92. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥21.8b and earnings per share (EPS) of JP¥57.79 in 2025. Although revenue sentiment has improved substantially, the analysts have made a real cut to per-share earnings estimates, suggesting that the growth is not without cost.

The consensus price target fell 5.5% to JP¥855, suggesting that the analysts are primarily focused on earnings as the driver of value for this business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SBI ARUHI's past performance and to peers in the same industry. One thing stands out from these estimates, which is that SBI ARUHI is forecast to grow faster in the future than it has in the past, with revenues expected to display 34% annualised growth until the end of 2025. If achieved, this would be a much better result than the 4.6% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.7% per year. So it looks like SBI ARUHI is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SBI ARUHI. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of SBI ARUHI's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for SBI ARUHI going out as far as 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - SBI ARUHI has 4 warning signs (and 1 which is a bit concerning) we think 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.