Niterra Co., Ltd. (TSE:5334) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Niterra Co., Ltd. (TSE:5334) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of JP¥614b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.5% to hit JP¥409 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Niterra

Taking into account the latest results, the most recent consensus for Niterra from eleven analysts is for revenues of JP¥642.5b in 2025. If met, it would imply a credible 4.6% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.5% to JP¥449. Before this earnings report, the analysts had been forecasting revenues of JP¥630.5b and earnings per share (EPS) of JP¥438 in 2025. So the consensus seems to have become somewhat more optimistic on Niterra's earnings potential following these results.

The consensus price target was unchanged at JP¥4,784, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Niterra analyst has a price target of JP¥6,200 per share, while the most pessimistic values it at JP¥3,200. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Niterra's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2025 being well below the historical 8.8% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.9% 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 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 Niterra following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 forecasts for Niterra going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Niterra that we have uncovered.

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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.