Stock Analysis

Sysmex Corporation Just Recorded A 7.1% EPS Beat: Here's What Analysts Are Forecasting Next

TSE:6869
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Investors in Sysmex Corporation (TSE:6869) had a good week, as its shares rose 4.2% to close at JP¥2,597 following the release of its first-quarter results. Sysmex reported JP¥112b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥17.69 beat expectations, being 7.1% 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Sysmex

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TSE:6869 Earnings and Revenue Growth August 8th 2024

Taking into account the latest results, the consensus forecast from Sysmex's 16 analysts is for revenues of JP¥511.3b in 2025. This reflects a credible 6.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.9% to JP¥91.70. Before this earnings report, the analysts had been forecasting revenues of JP¥514.7b and earnings per share (EPS) of JP¥93.22 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.

The analysts reconfirmed their price target of JP¥3,085, showing that the business is executing well and in line with expectations. 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¥3,600 per share, while the most bearish prices it at JP¥2,500. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Sysmex'shistorical trends, as the 9.4% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.8% per year. So although Sysmex is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates 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.