Results: Sysmex Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

Sysmex Corporation (TSE:6869) shareholders are probably feeling a little disappointed, since its shares fell 2.5% to JP¥2,736 in the week after its latest third-quarter results. Sysmex missed revenue estimates by 2.9%, coming in atJP¥124b, although statutory earnings per share (EPS) of JP¥26.65 beat expectations, coming in 8.2% ahead of analyst 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Sysmex

Taking into account the latest results, the current consensus from Sysmex's 16 analysts is for revenues of JP¥554.2b in 2026. This would reflect a notable 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 17% to JP¥109. Before this earnings report, the analysts had been forecasting revenues of JP¥553.7b and earnings per share (EPS) of JP¥108 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,394. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Sysmex at JP¥3,900 per share, while the most bearish prices it at JP¥3,000. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Sysmex's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.3% growth on an annualised basis. This is compared to a historical growth rate of 12% 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) 7.0% annually. Factoring in the forecast slowdown in growth, it looks like Sysmex is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥3,394, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Sysmex going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.