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

As you might know, Sumitomo Realty & Development Co., Ltd. (TSE:8830) recently reported its annual numbers. Sumitomo Realty & Development reported in line with analyst predictions, delivering revenues of JP¥968b and statutory earnings per share of JP¥374, suggesting the business is executing well and in line with its plan. 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.

View our latest analysis for Sumitomo Realty & Development

Taking into account the latest results, the consensus forecast from Sumitomo Realty & Development's nine analysts is for revenues of JP¥1.02t in 2025. This reflects a modest 4.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.1% to JP¥400. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.02t and earnings per share (EPS) of JP¥397 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¥6,168, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Sumitomo Realty & Development at JP¥7,400 per share, while the most bearish prices it at JP¥4,760. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sumitomo Realty & Development's past performance and to peers in the same industry. For example, we noticed that Sumitomo Realty & Development's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.9% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.6% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.8% annually. Not only are Sumitomo Realty & Development's revenues expected to improve, it seems that the analysts are also expecting it 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥6,168, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Sumitomo Realty & Development. Long-term earnings power is much more important than next year's profits. We have forecasts for Sumitomo Realty & Development 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 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.