Analysts Are Updating Their Suzuken Co., Ltd. (TSE:9987) Estimates After Its Interim Results

Investors in Suzuken Co., Ltd. (TSE:9987) had a good week, as its shares rose 3.4% to close at JP¥5,077 following the release of its half-year results. It was a workmanlike result, with revenues of JP¥615b coming in 2.5% ahead of expectations, and statutory earnings per share of JP¥358, in line with analyst appraisals. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Suzuken

Following last week's earnings report, Suzuken's five analysts are forecasting 2025 revenues to be JP¥2.40t, approximately in line with the last 12 months. Statutory earnings per share are forecast to decline 14% to JP¥370 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.40t and earnings per share (EPS) of JP¥358 in 2025. So the consensus seems to have become somewhat more optimistic on Suzuken's earnings potential following these results.

There's been no major changes to the consensus price target of JP¥5,306, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Suzuken at JP¥6,600 per share, while the most bearish prices it at JP¥4,500. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Suzuken's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.0% growth on an annualised basis. This is compared to a historical growth rate of 2.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Suzuken.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Suzuken's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Suzuken's revenue is expected to perform worse 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.

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 forecasts for Suzuken going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Suzuken has 3 warning signs (and 2 which don't sit too well with us) we think you should know about.

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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.