Sanrio Company, Ltd. (TSE:8136) Just Released Its Half-Yearly Earnings: Here's What Analysts Think

It's been a sad week for Sanrio Company, Ltd. (TSE:8136), who've watched their investment drop 11% to JP¥6,346 in the week since the company reported its interim result. Results were roughly in line with estimates, with revenues of JP¥88b and statutory earnings per share of JP¥177. 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, the most recent consensus for Sanrio Company from 13 analysts is for revenues of JP¥187.9b in 2026. If met, it would imply a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 6.0% to JP¥217. Before this earnings report, the analysts had been forecasting revenues of JP¥182.8b and earnings per share (EPS) of JP¥218 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

Check out our latest analysis for Sanrio Company

Even though revenue forecasts increased, there was no change to the consensus price target of JP¥8,556, suggesting the analysts are focused on earnings as the driver of value creation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Sanrio Company, with the most bullish analyst valuing it at JP¥9,300 and the most bearish at JP¥6,600 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sanrio Company's revenue growth is expected to slow, with the forecast 22% annualised growth rate until the end of 2026 being well below the historical 30% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.9% per year. Even after the forecast slowdown in growth, it seems obvious that Sanrio Company is also expected to grow faster than the wider industry.

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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at JP¥8,556, 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 Sanrio Company. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Sanrio Company analysts - going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Sanrio Company .

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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.