Suntory Beverage & Food Limited (TSE:2587) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

It's been a good week for Suntory Beverage & Food Limited (TSE:2587) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.9% to JP¥5,012. Suntory Beverage & Food reported in line with analyst predictions, delivering revenues of JP¥472b and statutory earnings per share of JP¥111, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Suntory Beverage & Food after the latest results.

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After the latest results, the ten analysts covering Suntory Beverage & Food are now predicting revenues of JP¥1.79t in 2026. If met, this would reflect a credible 5.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 14% to JP¥317. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.79t and earnings per share (EPS) of JP¥318 in 2026. 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.

View our latest analysis for Suntory Beverage & Food

The analysts reconfirmed their price target of JP¥5,228, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Suntory Beverage & Food, with the most bullish analyst valuing it at JP¥6,200 and the most bearish at JP¥4,700 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Suntory Beverage & Food is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. 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 2026 expected to display 4.2% growth on an annualised basis. This is compared to a historical growth rate of 8.5% 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) 2.1% 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¥5,228, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. 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.