Nippon Sanso Holdings Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Nippon Sanso Holdings Corporation (TSE:4091) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 6.2% to hit JP¥362b. Nippon Sanso Holdings also reported a statutory profit of JP¥101, which was an impressive 23% above what the analysts had forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Nippon Sanso Holdings' eight analysts is for revenues of JP¥1.44t in 2027. This would reflect a reasonable 2.3% increase on its revenue over the past 12 months. Statutory per share are forecast to be JP¥322, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.42t and earnings per share (EPS) of JP¥314 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Nippon Sanso Holdings
There's been no major changes to the consensus price target of JP¥6,344, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Nippon Sanso Holdings, with the most bullish analyst valuing it at JP¥7,600 and the most bearish at JP¥5,000 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. It's pretty clear that there is an expectation that Nippon Sanso Holdings' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 3.0% growth on an annualised basis. This is compared to a historical growth rate of 8.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Nippon Sanso Holdings is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nippon Sanso Holdings following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nippon Sanso Holdings' revenue is expected to perform worse than 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Nippon Sanso Holdings analysts - going out to 2029, and you can see them free on our platform here.
Even so, be aware that Nippon Sanso Holdings is showing 1 warning sign in our investment analysis , you should know about...
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.