SBI ARUHI Corporation (TSE:7198) Analysts Are Cutting Their Estimates: Here's What You Need To Know

As you might know, SBI ARUHI Corporation (TSE:7198) recently reported its full-year numbers. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥22b, statutory earnings beat expectations 4.2%, with SBI ARUHI reporting profits of JP¥42.98 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the twin analysts covering SBI ARUHI are now predicting revenues of JP¥24.1b in 2026. If met, this would reflect a solid 8.0% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥43.12, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥26.8b and earnings per share (EPS) of JP¥54.69 in 2026. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a pretty serious reduction to earnings per share numbers as well.

View our latest analysis for SBI ARUHI

The consensus price target fell 5.7% to JP¥825, with the weaker earnings outlook clearly leading valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that SBI ARUHI's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 8.0% 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. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.5% annually. So while SBI ARUHI's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on SBI ARUHI. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with SBI ARUHI .

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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.