Nifco Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Nifco Inc. (TSE:7988) had a good week, as its shares rose 4.9% to close at JP¥3,563 following the release of its half-yearly results. Revenues were in line with forecasts, at JP¥90b, although statutory earnings per share came in 16% below what the analysts expected, at JP¥67.25 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Nifco

After the latest results, the consensus from Nifco's nine analysts is for revenues of JP¥357.0b in 2025, which would reflect a measurable 3.3% decline in revenue compared to the last year of performance. Per-share earnings are expected to jump 90% to JP¥317. In the lead-up to this report, the analysts had been modelling revenues of JP¥355.7b and earnings per share (EPS) of JP¥315 in 2025. 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.

The analysts reconfirmed their price target of JP¥4,709, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Nifco analyst has a price target of JP¥5,300 per share, while the most pessimistic values it at JP¥3,800. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.4% by the end of 2025. This indicates a significant reduction from annual growth of 7.1% 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 3.6% per year. It's pretty clear that Nifco's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

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 Nifco going out to 2027, and you can see them free on our platform here.

Even so, be aware that Nifco is showing 3 warning signs 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.