SoftBank Corp. (TSE:9434) just released its latest first-quarter results and things are looking bullish. The company beat expectations with revenues of JP¥1.8t arriving 3.2% ahead of forecasts. Statutory earnings per share (EPS) were JP¥3.09, 9.7% ahead of estimates. 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 current consensus from SoftBank's 14 analysts is for revenues of JP¥7.53t in 2027. This would reflect a credible 4.7% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 4.2% to JP¥11.88. Before this earnings report, the analysts had been forecasting revenues of JP¥7.53t and earnings per share (EPS) of JP¥11.86 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 SoftBank
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥249. 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 SoftBank at JP¥270 per share, while the most bearish prices it at JP¥220. This is a very narrow spread of estimates, implying either that SoftBank is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of SoftBank'shistorical trends, as the 6.3% annualised revenue growth to the end of 2027 is roughly in line with the 5.4% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.2% per year. It's clear that while SoftBank's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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. We have estimates - from multiple SoftBank analysts - going out to 2029, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for SoftBank you should be aware of.
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