Earnings Update: Suntory Beverage & Food Limited (TSE:2587) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that Suntory Beverage & Food Limited (TSE:2587) filed its annual result this time last week. The early response was not positive, with shares down 3.2% to JP¥4,537 in the past week. Suntory Beverage & Food reported JP¥1.7t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥303 beat expectations, being 3.1% higher than what the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Suntory Beverage & Food

After the latest results, the nine analysts covering Suntory Beverage & Food are now predicting revenues of JP¥1.76t in 2025. If met, this would reflect an okay 3.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.7% to JP¥317. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.75t and earnings per share (EPS) of JP¥322 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,980. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Suntory Beverage & Food, with the most bullish analyst valuing it at JP¥7,100 and the most bearish at JP¥5,100 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Suntory Beverage & Food's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 7.7% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.0% per year. So it's pretty clear that, while Suntory Beverage & Food's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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 no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Suntory Beverage & Food analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.