Last week, you might have seen that Sharp Corporation (TSE:6753) released its interim result to the market. The early response was not positive, with shares down 4.6% to JP¥503 in the past week. The result was positive overall – although revenues of JP¥883b were in line with what the analysts predicted, Sharp surprised by delivering a statutory profit of JP¥11.87 per share, modestly greater than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the six analysts covering Sharp provided consensus estimates of JP¥1.76t revenue in 2027, which would reflect a perceptible 3.8% decline over the past 12 months. Statutory earnings per share are predicted to leap 111% to JP¥41.52. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.77t and earnings per share (EPS) of JP¥41.95 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 Sharp
The analysts reconfirmed their price target of JP¥601, showing that the business is executing well and in line with expectations. 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 Sharp, with the most bullish analyst valuing it at JP¥890 and the most bearish at JP¥430 per share. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 7.5% annualised revenue decline to the end of 2027 is roughly in line with the historical trend, which saw revenues shrink 6.7% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.5% per year. So while a broad number of companies are forecast to grow, unfortunately Sharp is expected to see its revenue affected worse than other companies in the 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that Sharp’s revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥601, 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. We have forecasts for Sharp going out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 3 warning signs for Sharp (1 shouldn’t be ignored!) that you need to take into consideration.
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