Sanrio Company, Ltd. (TSE:8136) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

It's been a good week for Sanrio Company, Ltd. (TSE:8136) shareholders, because the company has just released its latest annual results, and the shares gained 6.2% to JP¥5,828. The result was positive overall - although revenues of JP¥145b were in line with what the analysts predicted, Sanrio Company surprised by delivering a statutory profit of JP¥177 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sanrio Company after the latest results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Sanrio Company. Read for free now.

Taking into account the latest results, the consensus forecast from Sanrio Company's nine analysts is for revenues of JP¥172.1b in 2026. This reflects a meaningful 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 9.3% to JP¥193. In the lead-up to this report, the analysts had been modelling revenues of JP¥161.7b and earnings per share (EPS) of JP¥180 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Check out our latest analysis for Sanrio Company

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥7,269, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 Sanrio Company at JP¥8,000 per share, while the most bearish prices it at JP¥5,900. This is a very narrow spread of estimates, implying either that Sanrio Company is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. We would highlight that Sanrio Company's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2026 being well below the historical 25% 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) 6.4% 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 important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sanrio Company following these results. 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¥7,269, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Sanrio Company going out to 2028, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Sanrio Company that you need to be mindful 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.