Santen Pharmaceutical Co., Ltd. (TSE:4536) Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?

The interim results for Santen Pharmaceutical Co., Ltd. (TSE:4536) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of JP¥138b were in line with what the analysts predicted, Santen Pharmaceutical surprised by delivering a statutory profit of JP¥41.76 per share, modestly greater than expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Santen Pharmaceutical's nine analysts currently expect revenues in 2026 to be JP¥292.3b, approximately in line with the last 12 months. Per-share earnings are expected to rise 4.4% to JP¥101. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥292.7b and earnings per share (EPS) of JP¥101 in 2026. 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.

View our latest analysis for Santen Pharmaceutical

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,122. 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. There are some variant perceptions on Santen Pharmaceutical, with the most bullish analyst valuing it at JP¥2,600 and the most bearish at JP¥1,700 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Santen Pharmaceutical's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2026 being well below the historical 4.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Santen Pharmaceutical.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Santen Pharmaceutical'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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Santen Pharmaceutical going out to 2028, and you can see them free on our platform here..

You can also see our analysis of Santen Pharmaceutical's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.