Sapporo Holdings Limited (TSE:2501) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that Sapporo Holdings Limited (TSE:2501) released its first-quarter result to the market. The early response was not positive, with shares down 9.5% to JP¥7,258 in the past week. It was a workmanlike result, with revenues of JP¥119b coming in 4.6% ahead of expectations, and statutory earnings per share of JP¥99.00, in line with analyst appraisals. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, Sapporo Holdings' four analysts currently expect revenues in 2025 to be JP¥539.2b, approximately in line with the last 12 months. Per-share earnings are expected to surge 122% to JP¥155. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥540.6b and earnings per share (EPS) of JP¥157 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Sapporo Holdings

There were no changes to revenue or earnings estimates or the price target of JP¥6,425, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Sapporo Holdings analyst has a price target of JP¥7,900 per share, while the most pessimistic values it at JP¥5,000. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Sapporo Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.6% growth on an annualised basis. This is compared to a historical growth rate of 4.8% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sapporo Holdings.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥6,425, 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 estimates - from multiple Sapporo Holdings analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Sapporo Holdings you should be aware of, and 1 of them is significant.

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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.