Earnings Update: Nihon M&A Center Holdings Inc. (TSE:2127) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

It's been a mediocre week for Nihon M&A Center Holdings Inc. (TSE:2127) shareholders, with the stock dropping 11% to JP¥763 in the week since its latest full-year results. Results were roughly in line with estimates, with revenues of JP¥44b and statutory earnings per share of JP¥33.04. 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 Nihon M&A Center Holdings

Taking into account the latest results, the current consensus from Nihon M&A Center Holdings' seven analysts is for revenues of JP¥48.2b in 2025. This would reflect a meaningful 9.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 7.1% to JP¥36.22. Before this earnings report, the analysts had been forecasting revenues of JP¥47.6b and earnings per share (EPS) of JP¥37.38 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥926, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Nihon M&A Center Holdings at JP¥1,180 per share, while the most bearish prices it at JP¥700. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Nihon M&A Center Holdings shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Nihon M&A Center Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 9.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nihon M&A Center Holdings to grow faster than the wider 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.

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. 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..

It is also worth noting that we have found 1 warning sign for Nihon M&A Center Holdings that you need to take into consideration.

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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.