SAKURA Internet Inc. (TSE:3778) Just Reported Earnings, And Analysts Cut Their Target Price

Last week saw the newest half-yearly earnings release from SAKURA Internet Inc. (TSE:3778), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of JP¥8.1b and statutory earnings per share of JP¥75.23. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from SAKURA Internet's twin analysts is for revenues of JP¥35.7b in 2026. This reflects an okay 5.7% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥40.00, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥36.2b and earnings per share (EPS) of JP¥20.24 in 2026. Although the revenue estimates have not really changed, we can see there's been a massive increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for SAKURA Internet

The average the analysts price target fell 27% to JP¥2,886, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that SAKURA Internet's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 8.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SAKURA Internet 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 SAKURA Internet following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of SAKURA Internet's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on SAKURA Internet. Long-term earnings power is much more important than next year's profits. We have analyst estimates for SAKURA Internet going out as far as 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for SAKURA Internet that you need to take into consideration.

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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.