Sanrio Company, Ltd. (TSE:8136) First-Quarter Results: Here's What Analysts Are Forecasting For This Year
Last week, you might have seen that Sanrio Company, Ltd. (TSE:8136) released its quarterly result to the market. The early response was not positive, with shares down 6.4% to JP¥1,227 in the past week. Results overall were respectable, with statutory earnings of JP¥45.33 per share roughly in line with what the analysts had forecast. Revenues of JP¥52b came in 2.3% ahead of analyst predictions. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sanrio Company after the latest results.
Taking into account the latest results, the most recent consensus for Sanrio Company from twelve analysts is for revenues of JP¥228.9b in 2027. If met, it would imply a solid 13% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 15% to JP¥52.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥228.5b and earnings per share (EPS) of JP¥52.50 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Sanrio Company
There were no changes to revenue or earnings estimates or the price target of JP¥1,551, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Sanrio Company at JP¥1,860 per share, while the most bearish prices it at JP¥1,200. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Sanrio Company's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2027 being well below the historical 31% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.6% per year. So it's pretty clear that, while Sanrio Company's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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 Sanrio Company analysts - going out to 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Sanrio Company that you should be aware 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.