Nihon Kohden Corporation Just Missed Earnings; Here's What Analysts Are Forecasting Now
Nihon Kohden Corporation (TSE:6849) shareholders are probably feeling a little disappointed, since its shares fell 9.8% to JP¥1,435 in the week after its latest quarterly results. Things were not great overall, with a surprise (statutory) loss of JP¥4.73 per share on revenues of JP¥47b, even though the analysts had been expecting a profit. 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.
Taking into account the latest results, Nihon Kohden's eight analysts currently expect revenues in 2027 to be JP¥232.3b, approximately in line with the last 12 months. Per-share earnings are expected to grow 11% to JP¥94.45. In the lead-up to this report, the analysts had been modelling revenues of JP¥232.5b and earnings per share (EPS) of JP¥93.34 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 Nihon Kohden
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,836. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Nihon Kohden, with the most bullish analyst valuing it at JP¥2,200 and the most bearish at JP¥1,500 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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.1% by the end of 2027. This indicates a significant reduction from annual growth of 2.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Nihon Kohden is expected to lag 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥1,836, 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. We have estimates - from multiple Nihon Kohden analysts - going out to 2029, and you can see them free on our platform here.
You can also see our analysis of Nihon Kohden's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.