Earnings Update: Here's Why Analysts Just Lifted Their Sanyo Chemical Industries, Ltd. (TSE:4471) Price Target To JP¥6,200
The investors in Sanyo Chemical Industries, Ltd.'s (TSE:4471) will be rubbing their hands together with glee today, after the share price leapt 26% to JP¥6,120 in the week following its quarterly results. Sanyo Chemical Industries reported in line with analyst predictions, delivering revenues of JP¥39b and statutory earnings per share of JP¥707, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Sanyo Chemical Industries' twin analysts are now forecasting revenues of JP¥154.6b in 2027. This would be a solid 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.7% to JP¥557. In the lead-up to this report, the analysts had been modelling revenues of JP¥149.1b and earnings per share (EPS) of JP¥412 in 2027. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a massive increase in earnings per share in particular.
View our latest analysis for Sanyo Chemical Industries
It will come as no surprise to learn that the analysts have increased their price target for Sanyo Chemical Industries 22% to JP¥6,200on the back of these upgrades.
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. For example, we noticed that Sanyo Chemical Industries' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 20% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 4.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.2% per year. Not only are Sanyo Chemical Industries' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sanyo Chemical Industries' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Sanyo Chemical Industries going out as far as 2029, and you can see them free on our platform here.
You can also see our analysis of Sanyo Chemical Industries' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.