Suntory Beverage & Food Limited Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Suntory Beverage & Food Limited (TSE:2587) last week released its latest first-quarter, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 3.3% short of analyst estimates at JP¥366b, and statutory earnings of JP¥49.90 per share missed forecasts by 6.6%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Suntory Beverage & Food's nine analysts is for revenues of JP¥1.76t in 2025. This would reflect a satisfactory 3.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.1% to JP¥305. Before this earnings report, the analysts had been forecasting revenues of JP¥1.75t and earnings per share (EPS) of JP¥305 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.

See our latest analysis for Suntory Beverage & Food

The analysts reconfirmed their price target of JP¥5,573, showing that the business is executing well and in line with 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. Currently, the most bullish analyst values Suntory Beverage & Food at JP¥6,700 per share, while the most bearish prices it at JP¥5,050. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Suntory Beverage & Food's revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2025 being well below the historical 8.2% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.9% per year. Even after the forecast slowdown in growth, it seems obvious that Suntory Beverage & Food is also expected to grow faster than the wider industry.

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. 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.

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.