SoftBank Corp. (TSE:9434) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

A week ago, SoftBank Corp. (TSE:9434) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 3.5% to hit JP¥1.5t. Statutory earnings per share (EPS) came in at JP¥34.32, some 4.5% above whatthe analysts had 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 SoftBank after the latest results.

Check out our latest analysis for SoftBank

Taking into account the latest results, the consensus forecast from SoftBank's 17 analysts is for revenues of JP¥6.34t in 2025. This reflects a credible 2.4% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥108, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥6.34t and earnings per share (EPS) of JP¥108 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¥1,988, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic SoftBank analyst has a price target of JP¥2,500 per share, while the most pessimistic values it at JP¥1,500. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that SoftBank's revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2025 being well below the historical 7.2% p.a. growth over the last five years. Compare this to the 8 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.0% per year. Factoring in the forecast slowdown in growth, it looks like SoftBank is forecast to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥1,988, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for SoftBank going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for SoftBank 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.