Sapporo Holdings Limited (TSE:2501) Released Earnings Last Week And Analysts Lifted Their Price Target To JP¥5,460

Investors in Sapporo Holdings Limited (TSE:2501) had a good week, as its shares rose 7.8% to close at JP¥7,669 following the release of its third-quarter results. It was a credible result overall, with revenues of JP¥248b and statutory earnings per share of JP¥112 both in line with analyst estimates, showing that Sapporo Holdings is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Sapporo Holdings

After the latest results, the three analysts covering Sapporo Holdings are now predicting revenues of JP¥544.7b in 2025. If met, this would reflect a modest 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plunge 24% to JP¥168 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥541.2b and earnings per share (EPS) of JP¥168 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to JP¥5,460. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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¥6,100 per share, while the most pessimistic values it at JP¥5,000. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sapporo Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sapporo Holdings' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Sapporo Holdings'historical trends, as the 2.8% annualised revenue growth to the end of 2025 is roughly in line with the 2.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.0% annually. So it's pretty clear that Sapporo Holdings is forecast to grow substantially faster than its industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 estimates - from multiple Sapporo Holdings analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Sapporo Holdings is showing 2 warning signs 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.