Results: Sysmex Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a pretty great week for Sysmex Corporation (TSE:6869) shareholders, with its shares surging 13% to JP¥3,137 in the week since its latest interim results. Revenues were JP¥242b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥24.01 were also better than expected, beating analyst predictions by 11%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Sysmex

After the latest results, the 16 analysts covering Sysmex are now predicting revenues of JP¥511.1b in 2025. If met, this would reflect an okay 4.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.7% to JP¥92.32. Before this earnings report, the analysts had been forecasting revenues of JP¥510.5b and earnings per share (EPS) of JP¥92.07 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.

The analysts reconfirmed their price target of JP¥3,191, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Sysmex, with the most bullish analyst valuing it at JP¥3,800 and the most bearish at JP¥2,630 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sysmex's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Sysmex's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.2% growth on an annualised basis. This is compared to a historical growth rate of 11% 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) 6.5% per year. Even after the forecast slowdown in growth, it seems obvious that Sysmex 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. The consensus price target held steady at JP¥3,191, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sysmex going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Sysmex'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.