NTT, Inc. Just Missed EPS By 16%: Here's What Analysts Think Will Happen Next

NTT, Inc. (TSE:9432) shareholders are probably feeling a little disappointed, since its shares fell 7.6% to JP¥160 in the week after its latest interim results. It was not a great result overall. While revenues of JP¥7.4t were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 16% to hit JP¥2.77 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, NTT's 14 analysts are now forecasting revenues of JP¥15t in 2027. This would be a credible 2.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 8.1% to JP¥12.58. In the lead-up to this report, the analysts had been modelling revenues of JP¥15t and earnings per share (EPS) of JP¥12.81 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 NTT

The analysts reconfirmed their price target of JP¥182, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on NTT, with the most bullish analyst valuing it at JP¥240 and the most bearish at JP¥143 per share. 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. We can infer from the latest estimates that forecasts expect a continuation of NTT'shistorical trends, as the 4.1% annualised revenue growth to the end of 2027 is roughly in line with the 3.9% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.8% annually. It's clear that while NTT'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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥182, 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. At Simply Wall St, we have a full range of analyst estimates for NTT going out to 2029, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for NTT (1 shouldn't be ignored!) that we have uncovered.

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