Suntory Beverage & Food Limited (TSE:2587) Just Released Its Annual Earnings: Here's What Analysts Think

Suntory Beverage & Food Limited (TSE:2587) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. 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. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Suntory Beverage & Food's nine analysts is for revenues of JP¥1.76t in 2025. This reflects a credible 3.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 2.7% to JP¥311. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.77t and earnings per share (EPS) of JP¥316 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.

See our latest analysis for Suntory Beverage & Food

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,889. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Suntory Beverage & Food at JP¥6,700 per share, while the most bearish prices it at JP¥5,100. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Suntory Beverage & Food's revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2025 being well below the historical 7.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.0% annually. 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. The consensus price target held steady at JP¥5,889, 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. We have estimates - from multiple Suntory Beverage & Food analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Suntory Beverage & Food's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.