Sanrio Company, Ltd. Beat Revenue Forecasts By 18%: Here's What Analysts Are Forecasting Next

Explore Sanrio Company's Fair Values from the Community and select yours

It's been a pretty great week for Sanrio Company, Ltd. (TSE:8136) shareholders, with its shares surging 19% to JP¥7,206 in the week since its latest first-quarter results. Sanrio Company beat revenue forecasts by a solid 18% to hit JP¥43b. Statutory earnings per share came in at JP¥177, in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the ten analysts covering Sanrio Company are now predicting revenues of JP¥172.3b in 2026. If met, this would reflect a decent 8.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 2.5% to JP¥197. In the lead-up to this report, the analysts had been modelling revenues of JP¥169.3b and earnings per share (EPS) of JP¥195 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.

See our latest analysis for Sanrio Company

There were no changes to revenue or earnings estimates or the price target of JP¥7,443, 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 Sanrio Company analyst has a price target of JP¥9,000 per share, while the most pessimistic values it at JP¥5,900. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Sanrio Company's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 28% 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 6.4% annually. So it's pretty clear that, while Sanrio Company's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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¥7,443, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sanrio Company going out to 2028, and you can see them free on our platform here.

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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.