Analysts Have Made A Financial Statement On Niterra Co., Ltd.'s (TSE:5334) Yearly Report

It's been a good week for Niterra Co., Ltd. (TSE:5334) shareholders, because the company has just released its latest yearly results, and the shares gained 8.2% to JP¥4,820. It was a credible result overall, with revenues of JP¥653b and statutory earnings per share of JP¥466 both in line with analyst estimates, showing that Niterra is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Niterra from seven analysts is for revenues of JP¥675.3b in 2026. If met, it would imply a modest 3.4% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be JP¥465, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥671.6b and earnings per share (EPS) of JP¥486 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Niterra

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥5,083, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Niterra, with the most bullish analyst valuing it at JP¥5,900 and the most bearish at JP¥4,200 per share. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Niterra's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.4% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.0% annually. So it's pretty clear that, while Niterra's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Niterra. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥5,083, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Niterra going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Niterra that you should be aware of.

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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.