SoftBank Corp. (TSE:9434) investors will be delighted, with the company turning in some strong numbers with its latest results. SoftBank beat earnings, with revenues hitting JP¥3.8t, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for SoftBank from 14 analysts is for revenues of JP¥7.71t in 2027. If met, it would imply a credible 3.7% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 9.1% to JP¥12.78. Before this earnings report, the analysts had been forecasting revenues of JP¥7.63t and earnings per share (EPS) of JP¥12.67 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.
See our latest analysis for SoftBank
There were no changes to revenue or earnings estimates or the price target of JP¥275, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic SoftBank analyst has a price target of JP¥375 per share, while the most pessimistic values it at JP¥240. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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 clear from the latest estimates that SoftBank's rate of growth is expected to accelerate meaningfully, with the forecast 7.6% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 5.6% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.4% per year. SoftBank is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.
With that in mind, we wouldn't be too quick to come to a conclusion on SoftBank. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple SoftBank analysts - going out to 2029, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with SoftBank , and understanding this should be part of your investment process.
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