NH Foods Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders of NH Foods Ltd. (TSE:2282) will be pleased this week, given that the stock price is up 13% to JP¥6,428 following its latest interim results. It looks like a credible result overall - although revenues of JP¥723b were what the analysts expected, NH Foods surprised by delivering a (statutory) profit of JP¥235 per share, an impressive 21% above what was forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, NH Foods' eight analysts are now forecasting revenues of JP¥1.44t in 2026. This would be an okay 2.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 9.8% to JP¥360. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.41t and earnings per share (EPS) of JP¥331 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Check out our latest analysis for NH Foods

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥6,181, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. Currently, the most bullish analyst values NH Foods at JP¥7,200 per share, while the most bearish prices it at JP¥5,300. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting NH Foods' growth to accelerate, with the forecast 4.7% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect NH Foods to grow faster 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 NH Foods' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for NH Foods going out to 2028, and you can see them free on our platform here..

You can also view our analysis of NH Foods' balance sheet, and whether we think NH Foods is carrying too much debt, for free on our platform here.

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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.