Sansan, Inc. Just Recorded A 27% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a pretty great week for Sansan, Inc. (TSE:4443) shareholders, with its shares surging 20% to JP¥2,130 in the week since its latest yearly results. Revenues were JP¥34b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥7.59, an impressive 27% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Sansan

Taking into account the latest results, the consensus forecast from Sansan's five analysts is for revenues of JP¥43.0b in 2025. This reflects a major 27% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 116% to JP¥16.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥41.7b and earnings per share (EPS) of JP¥14.61 in 2025. So it seems there's been a definite increase in optimism about Sansan's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 7.7% to JP¥2,240per share. 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 Sansan at JP¥3,200 per share, while the most bearish prices it at JP¥1,650. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 27% growth on an annualised basis. That is in line with its 22% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Sansan is expected to maintain its revenue growth rate, it's definitely 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 Sansan following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Sansan analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Sansan (including 1 which makes us a bit uncomfortable) .

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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.

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