Here's What Analysts Are Forecasting For SoftBank Corp. (TSE:9434) After Its Full-Year Results

It's been a good week for SoftBank Corp. (TSE:9434) shareholders, because the company has just released its latest yearly results, and the shares gained 2.9% to JP¥1,954. SoftBank reported JP¥6.1t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥103 beat expectations, being 4.7% higher than what the analysts 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for SoftBank

Taking into account the latest results, the consensus forecast from SoftBank's 16 analysts is for revenues of JP¥6.41t in 2025. This reflects a credible 5.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 2.2% to JP¥105. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥6.42t and earnings per share (EPS) of JP¥105 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of JP¥1,931, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on SoftBank, with the most bullish analyst valuing it at JP¥2,500 and the most bearish at JP¥1,500 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await SoftBank shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that SoftBank's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 8.2% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.3% annually. Even after the forecast slowdown in growth, it seems obvious that SoftBank 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. 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple SoftBank analysts - going out to 2027, 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 2 warning signs for SoftBank (1 is significant!) 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.