Results: Suntory Beverage & Food Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

Suntory Beverage & Food Limited (TSE:2587) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues were JP¥460b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥119, an impressive 30% ahead of estimates. 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.

View our latest analysis for Suntory Beverage & Food

After the latest results, the nine analysts covering Suntory Beverage & Food are now predicting revenues of JP¥1.75t in 2025. If met, this would reflect a reasonable 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 3.5% to JP¥331. Before this earnings report, the analysts had been forecasting revenues of JP¥1.75t and earnings per share (EPS) of JP¥331 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.

There were no changes to revenue or earnings estimates or the price target of JP¥6,183, 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. 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. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Suntory Beverage & Food's past performance and to peers in the same industry. 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 3.4% growth on an annualised basis. This is compared to a historical growth rate of 6.9% 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥6,183, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Suntory Beverage & Food. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Suntory Beverage & Food going out to 2026, and you can see them free on our platform here..

We also provide an overview of the Suntory Beverage & Food Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.