Results: Sanyo Special Steel Co., Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

Sanyo Special Steel Co., Ltd. (TSE:5481) investors will be delighted, with the company turning in some strong numbers with its latest results. Sanyo Special Steel beat earnings, with revenues hitting JP¥89b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Sanyo Special Steel

Following last week's earnings report, Sanyo Special Steel's two analysts are forecasting 2025 revenues to be JP¥346.5b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 22% to JP¥151. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥345.5b and earnings per share (EPS) of JP¥153 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.

There were no changes to revenue or earnings estimates or the price target of JP¥2,650, suggesting that the company has met expectations in its recent result.

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 Sanyo Special Steel's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.6% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that Sanyo Special Steel is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Sanyo Special Steel that you need to take into consideration.

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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.

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