Suntory Beverage & Food Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
It's been a good week for Suntory Beverage & Food Limited (TSE:2587) shareholders, because the company has just released its latest third-quarter results, and the shares gained 8.0% to JP¥5,278. Suntory Beverage & Food reported JP¥504b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥113 beat expectations, being 6.8% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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, the consensus forecast from Suntory Beverage & Food's eleven analysts is for revenues of JP¥1.90t in 2027. This reflects a modest 3.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.6% to JP¥300. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.90t and earnings per share (EPS) of JP¥300 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.
Check out our latest analysis for Suntory Beverage & Food
The analysts reconfirmed their price target of JP¥4,798, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Suntory Beverage & Food analyst has a price target of JP¥6,000 per share, while the most pessimistic values it at JP¥4,100. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Suntory Beverage & Food's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 2.5% growth on an annualised basis. This is compared to a historical growth rate of 7.2% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.5% annually. So it's pretty clear that, while Suntory Beverage & Food's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥4,798, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Suntory Beverage & Food. Long-term earnings power is much more important than next year's profits. We have forecasts for Suntory Beverage & Food going out to 2028, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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