Results: SG Holdings Co.,Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts
SG Holdings Co.,Ltd. (TSE:9143) just released its half-year report and things are looking bullish. The company beat forecasts, with revenue of JP¥920b, some 7.1% above estimates, and statutory earnings per share (EPS) coming in at JP¥26.25, 23% ahead of expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, SG HoldingsLtd's eleven analysts currently expect revenues in 2027 to be JP¥1.78t, approximately in line with the last 12 months. Statutory per-share earnings are expected to be JP¥106, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.77t and earnings per share (EPS) of JP¥104 in 2027. 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.
Check out our latest analysis for SG HoldingsLtd
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,717. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on SG HoldingsLtd, with the most bullish analyst valuing it at JP¥2,000 and the most bearish at JP¥1,500 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.8% by the end of 2027. This indicates a significant reduction from annual growth of 2.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.6% annually for the foreseeable future. It's pretty clear that SG HoldingsLtd's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥1,717, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for SG HoldingsLtd going out to 2029, and you can see them free on our platform here..
Even so, be aware that SG HoldingsLtd is showing 2 warning signs in our investment analysis , you should know about...
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