Sumitomo Osaka Cement Co., Ltd. (TSE:5232) Just Reported And Analysts Have Been Lifting Their Price Targets

It's been a mediocre week for Sumitomo Osaka Cement Co., Ltd. (TSE:5232) shareholders, with the stock dropping 13% to JP¥3,468 in the week since its latest quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥53b, statutory earnings were in line with expectations, at JP¥448 per share. 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.

Check out our latest analysis for Sumitomo Osaka Cement

Taking into account the latest results, the consensus forecast from Sumitomo Osaka Cement's six analysts is for revenues of JP¥232.6b in 2025. This reflects a satisfactory 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.5% to JP¥334. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥232.4b and earnings per share (EPS) of JP¥335 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 consensus price target rose 5.8% to JP¥4,560despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Sumitomo Osaka Cement's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Sumitomo Osaka Cement analyst has a price target of JP¥5,100 per share, while the most pessimistic values it at JP¥4,040. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sumitomo Osaka Cement is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sumitomo Osaka Cement's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Sumitomo Osaka Cement is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.8% annualised growth until the end of 2025. If achieved, this would be a much better result than the 3.8% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.9% per year. So it looks like Sumitomo Osaka Cement is expected to grow faster than its competitors, at least for a while.

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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Sumitomo Osaka Cement analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Sumitomo Osaka Cement that you should be aware of.

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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.