Sankyu Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a good week for Sankyu Inc. (TSE:9065) shareholders, because the company has just released its latest annual results, and the shares gained 9.4% to JP¥6,973. Sankyu reported JP¥607b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥571 beat expectations, being 6.8% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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

Following last week's earnings report, Sankyu's six analysts are forecasting 2026 revenues to be JP¥608.2b, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 4.7% to JP¥556 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥604.8b and earnings per share (EPS) of JP¥533 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Sankyu

There's been no major changes to the consensus price target of JP¥7,083, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sankyu, with the most bullish analyst valuing it at JP¥8,800 and the most bearish at JP¥6,400 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Sankyu's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.2% growth on an annualised basis. This is compared to a historical growth rate of 1.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sankyu.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sankyu's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sankyu's revenue is expected to perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Sankyu. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Sankyu 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 Sankyu that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.