Here's What Analysts Are Forecasting For Sysmex Corporation (TSE:6869) After Its Half-Year Results
It's been a good week for Sysmex Corporation (TSE:6869) shareholders, because the company has just released its latest half-yearly results, and the shares gained 3.0% to JP¥2,078. Results overall were respectable, with statutory earnings of JP¥15.30 per share roughly in line with what the analysts had forecast. Revenues of JP¥273b came in 2.8% ahead of analyst predictions. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sysmex after the latest results.
After the latest results, the 14 analysts covering Sysmex are now predicting revenues of JP¥553.0b in 2027. If met, this would reflect a satisfactory 2.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 19% to JP¥68.21. Before this earnings report, the analysts had been forecasting revenues of JP¥548.8b and earnings per share (EPS) of JP¥66.28 in 2027. So the consensus seems to have become somewhat more optimistic on Sysmex's earnings potential following these results.
Check out our latest analysis for Sysmex
The consensus price target was unchanged at JP¥2,150, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Sysmex at JP¥3,300 per share, while the most bearish prices it at JP¥1,500. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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 Sysmex's revenue growth is expected to slow, with the forecast 4.8% annualised growth rate until the end of 2027 being well below the historical 8.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.7% 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 Sysmex.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sysmex following these results. 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¥2,150, with the latest estimates not enough to have an impact on their price targets.
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 Sysmex analysts - 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 Sysmex that you need to take into consideration.
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