The Sumitomo Realty & Development Co., Ltd. (TSE:8830) Full-Year Results Are Out And Analysts Have Published New Forecasts

Last week saw the newest yearly earnings release from Sumitomo Realty & Development Co., Ltd. (TSE:8830), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of JP¥1.0t and statutory earnings per share of JP¥405. 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. 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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Taking into account the latest results, the current consensus from Sumitomo Realty & Development's ten analysts is for revenues of JP¥1.05t in 2026. This would reflect a modest 3.4% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 6.0% to JP¥435. Before this earnings report, the analysts had been forecasting revenues of JP¥1.05t and earnings per share (EPS) of JP¥432 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.

See our latest analysis for Sumitomo Realty & Development

The analysts reconfirmed their price target of JP¥5,859, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Sumitomo Realty & Development, with the most bullish analyst valuing it at JP¥7,850 and the most bearish at JP¥4,800 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Sumitomo Realty & Development shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Sumitomo Realty & Development's rate of growth is expected to accelerate meaningfully, with the forecast 3.4% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.0% annually. Sumitomo Realty & Development is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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 real changes to revenue forecasts, with the business still expected to grow in line with the overall 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..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Sumitomo Realty & Development 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.