Sumitomo Realty & Development Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

It's been a good week for Sumitomo Realty & Development Co., Ltd. (TSE:8830) shareholders, because the company has just released its latest first-quarter results, and the shares gained 4.3% to JP¥5,959. It looks like a credible result overall - although revenues of JP¥293b were in line with what the analysts predicted, Sumitomo Realty & Development surprised by delivering a statutory profit of JP¥158 per share, a notable 16% above expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the eleven analysts covering Sumitomo Realty & Development are now predicting revenues of JP¥1.04t in 2026. If met, this would reflect a reasonable 4.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.1% to JP¥444. Before this earnings report, the analysts had been forecasting revenues of JP¥1.04t and earnings per share (EPS) of JP¥443 in 2026. 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.

Check out our latest analysis for Sumitomo Realty & Development

There were no changes to revenue or earnings estimates or the price target of JP¥6,163, suggesting that the company has met expectations in its recent result. 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 Sumitomo Realty & Development at JP¥7,910 per share, while the most bearish prices it at JP¥5,100. 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.

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. The analysts are definitely expecting Sumitomo Realty & Development's growth to accelerate, with the forecast 6.2% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sumitomo Realty & Development to grow faster than 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 Sumitomo Realty & Development going out to 2028, 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 Sumitomo Realty & Development 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.