Results: Nisshin Seifun Group Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

A week ago, Nisshin Seifun Group Inc. (TSE:2002) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 4.1% to hit JP¥214b. Nisshin Seifun Group also reported a statutory profit of JP¥36.46, which was an impressive 32% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nisshin Seifun Group after the latest results.

See our latest analysis for Nisshin Seifun Group

Taking into account the latest results, Nisshin Seifun Group's four analysts currently expect revenues in 2025 to be JP¥856.8b, approximately in line with the last 12 months. Statutory per share are forecast to be JP¥114, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥854.5b and earnings per share (EPS) of JP¥116 in 2025. 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.

With no major changes to earnings forecasts, the consensus price target fell 5.5% to JP¥2,350, suggesting that the analysts might have previously been hoping for an earnings upgrade. 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 Nisshin Seifun Group at JP¥2,700 per share, while the most bearish prices it at JP¥2,000. This is a very narrow spread of estimates, implying either that Nisshin Seifun Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.1% by the end of 2025. This indicates a significant reduction from annual growth of 6.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.7% annually for the foreseeable future. It's pretty clear that Nisshin Seifun Group'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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nisshin Seifun Group's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Nisshin Seifun Group's future valuation.

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

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com