Results: SBI Holdings, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
As you might know, SBI Holdings, Inc. (TSE:8473) just kicked off its latest half-year results with some very strong numbers. SBI Holdings delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting JP¥487b-18% above indicated-andJP¥128-47% above forecasts- respectively 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 recent earnings report, the consensus from five analysts covering SBI Holdings is for revenues of JP¥1.64t in 2027. This implies a sizeable 20% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to plunge 41% to JP¥450 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥1.56t and earnings per share (EPS) of JP¥445 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.
View our latest analysis for SBI Holdings
It may not be a surprise to see thatthe analysts have reconfirmed their price target of JP¥3,924, implying that the uplift in revenue is not expected to greatly contribute to SBI Holdings's valuation in the near term. 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. The most optimistic SBI Holdings analyst has a price target of JP¥4,510 per share, while the most pessimistic values it at JP¥3,660. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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 revenue is expected to reverse, with a forecast 36% annualised decline to the end of 2027. That is a notable change from historical growth of 22% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.5% per year. It's pretty clear that SBI Holdings' revenues are expected to perform substantially worse 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 upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at JP¥3,924, 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 SBI Holdings going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for SBI Holdings (1 makes us a bit uncomfortable!) that you need to take into consideration.
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