NOK Corporation (TSE:7240) Full-Year Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for NOK Corporation (TSE:7240) shareholders, because the company has just released its latest yearly results, and the shares gained 3.0% to JP¥2,131. NOK reported JP¥767b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥185 beat expectations, being 4.2% higher than what the analysts expected. 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. 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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Taking into account the latest results, the current consensus, from the six analysts covering NOK, is for revenues of JP¥733.5b in 2026. This implies a measurable 4.4% reduction in NOK's revenue over the past 12 months. Per-share earnings are expected to step up 11% to JP¥207. In the lead-up to this report, the analysts had been modelling revenues of JP¥733.6b and earnings per share (EPS) of JP¥206 in 2026. 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.

See our latest analysis for NOK

The analysts reconfirmed their price target of JP¥2,562, showing that the business is executing well and in line with expectations. 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. The most optimistic NOK analyst has a price target of JP¥2,700 per share, while the most pessimistic values it at JP¥2,500. This is a very narrow spread of estimates, implying either that NOK is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.4% by the end of 2026. This indicates a significant reduction from annual growth of 5.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.6% annually for the foreseeable future. It's pretty clear that NOK's revenues are expected to perform substantially worse than 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¥2,562, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on NOK. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple NOK analysts - going out to 2028, and you can see them free on our platform here.

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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.