Nihon M&A Center Holdings Inc. Just Missed EPS By 28%: Here's What Analysts Think Will Happen Next

Nihon M&A Center Holdings Inc. (TSE:2127) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Unfortunately, Nihon M&A Center Holdings delivered a serious earnings miss. Revenues of JP¥11b were 15% below expectations, and statutory earnings per share of JP¥9.68 missed estimates by 28%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Nihon M&A Center Holdings

Taking into account the latest results, the consensus forecast from Nihon M&A Center Holdings' five analysts is for revenues of JP¥51.9b in 2026. This reflects a substantial 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 21% to JP¥39.03. Before this earnings report, the analysts had been forecasting revenues of JP¥52.4b and earnings per share (EPS) of JP¥39.47 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.

There were no changes to revenue or earnings estimates or the price target of JP¥818, suggesting that the company has met expectations in its recent result. 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¥500. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nihon M&A Center Holdings' past performance and to peers in the same industry. The analysts are definitely expecting Nihon M&A Center Holdings' growth to accelerate, with the forecast 17% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% 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 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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Nihon M&A Center Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Nihon M&A Center Holdings going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Nihon M&A Center Holdings that you need to be mindful 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.