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

The analysts might have been a bit too bullish on SBI ARUHI Corporation (TSE:7198), given that the company fell short of expectations when it released its quarterly results last week. Results showed a clear earnings miss, with JP¥5.8b revenue coming in 9.1% lower than what the analystsexpected. Statutory earnings per share (EPS) of JP¥14.39 missed the mark badly, arriving some 32% below what was expected. Following the result, the analysts have 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. 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 twin analysts is for revenues of JP¥26.8b in 2026. This would reflect a notable 20% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 33% to JP¥54.69. In the lead-up to this report, the analysts had been modelling revenues of JP¥28.6b and earnings per share (EPS) of JP¥58.76 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of JP¥875, suggesting the downgrades are not expected to have a long-term impact on SBI ARUHI's 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. For example, we noticed that SBI ARUHI's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 16% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 6.0% a year 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 6.6% 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at JP¥875, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for SBI ARUHI going out as far as 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for SBI ARUHI that 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.