Santen Pharmaceutical Co., Ltd. Just Beat EPS By 5.5%: Here's What Analysts Think Will Happen Next

As you might know, Santen Pharmaceutical Co., Ltd. (TSE:4536) just kicked off its latest interim results with some very strong numbers. The company beat expectations with revenues of JP¥146b arriving 2.4% ahead of forecasts. Statutory earnings per share (EPS) were JP¥52.88, 5.5% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Santen Pharmaceutical

Taking into account the latest results, Santen Pharmaceutical's ten analysts currently expect revenues in 2025 to be JP¥300.7b, approximately in line with the last 12 months. Per-share earnings are expected to surge 31% to JP¥98.32. Before this earnings report, the analysts had been forecasting revenues of JP¥300.0b and earnings per share (EPS) of JP¥97.42 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.

There were no changes to revenue or earnings estimates or the price target of JP¥2,093, suggesting that the company has met expectations in its recent result. 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 Santen Pharmaceutical analyst has a price target of JP¥2,500 per share, while the most pessimistic values it at JP¥1,700. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.2% by the end of 2025. This indicates a significant reduction from annual growth of 5.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Santen Pharmaceutical is expected to lag 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. 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. We have forecasts for Santen Pharmaceutical going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Santen Pharmaceutical that we have uncovered.

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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.