Earnings Miss: Nihon M&A Center Holdings Inc. Missed EPS By 15% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for Nihon M&A Center Holdings Inc. (TSE:2127), which a week ago released some disappointing interim results that could have a notable impact on how the market views the stock. It looks like a clear earnings miss, with both revenues and earnings falling well short of analyst predictions. Revenues of JP¥19b missed by 12%, and statutory earnings per share of JP¥9.05 fell short of forecasts by 15%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nihon M&A Center Holdings after the latest results.

View our latest analysis for Nihon M&A Center Holdings

Taking into account the latest results, the current consensus from Nihon M&A Center Holdings' eight analysts is for revenues of JP¥47.2b in 2025. This would reflect a decent 8.4% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be JP¥33.88, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥47.7b and earnings per share (EPS) of JP¥34.65 in 2025. 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.

The consensus price target held steady at JP¥831, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Nihon M&A Center Holdings analyst has a price target of JP¥1,180 per share, while the most pessimistic values it at JP¥500. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Nihon M&A Center Holdings' growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Nihon M&A Center Holdings is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nihon M&A Center Holdings. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Nihon M&A Center Holdings going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Nihon M&A Center Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.