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NH Foods Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Shareholders might have noticed that NH Foods Ltd. (TSE:2282) filed its half-year result this time last week. The early response was not positive, with shares down 2.1% to JP¥1,960 in the past week. Statutory earnings per share fell badly short of expectations, coming in at JP¥62.26, some 27% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at JP¥769b. 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 NH Foods after the latest results.
Following last week's earnings report, NH Foods' seven analysts are forecasting 2027 revenues to be JP¥1.49t, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 26% to JP¥136. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.50t and earnings per share (EPS) of JP¥137 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.
View our latest analysis for NH Foods
There were no changes to revenue or earnings estimates or the price target of JP¥2,213, 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. There are some variant perceptions on NH Foods, with the most bullish analyst valuing it at JP¥2,700 and the most bearish at JP¥1,900 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. We would highlight that revenue is expected to reverse, with a forecast 1.5% annualised decline to the end of 2027. That is a notable change from historical growth of 4.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.1% annually for the foreseeable future. It's pretty clear that NH Foods' revenues are expected to perform substantially worse than the wider 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 NH Foods' revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥2,213, 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 forecasts for NH Foods 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 NH Foods (1 is a bit unpleasant!) that you need to take into consideration.
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