Analyst Estimates: Here's What Brokers Think Of Nippon Thompson Co., Ltd. (TSE:6480) After Its Half-Year Report

Shareholders might have noticed that Nippon Thompson Co., Ltd. (TSE:6480) filed its half-yearly result this time last week. The early response was not positive, with shares down 4.4% to JP¥481 in the past week. Results were roughly in line with estimates, with revenues of JP¥14b and statutory earnings per share of JP¥37.82. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Nippon Thompson

Taking into account the latest results, Nippon Thompson's two analysts currently expect revenues in 2025 to be JP¥53.2b, approximately in line with the last 12 months. Per-share earnings are expected to surge 226% to JP¥47.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥56.0b and earnings per share (EPS) of JP¥38.47 in 2025. While revenue forecasts have been revised downwards, the analysts look to have become more optimistic on the company's cost base, given the very substantial lift in to the earnings per share numbers.

The consensus has made no major changes to the price target of JP¥577, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nippon Thompson's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.3% by the end of 2025. This indicates a significant reduction from annual growth of 5.6% 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 4.8% per year. It's pretty clear that Nippon Thompson's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Nippon Thompson's earnings potential next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at JP¥577, 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 analyst estimates for Nippon Thompson going out as far as 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Nippon Thompson has 2 warning signs we think 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.