Analysts Are Updating Their Nissin Foods Holdings Co.,Ltd. (TSE:2897) Estimates After Its First-Quarter Results

It's been a mediocre week for Nissin Foods Holdings Co.,Ltd. (TSE:2897) shareholders, with the stock dropping 17% to JP¥3,640 in the week since its latest first-quarter results. It was a pretty mixed result, with revenues beating expectations to hit JP¥185b. Statutory earnings fell 2.6% short of analyst forecasts, reaching JP¥52.46 per share. 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.

View our latest analysis for Nissin Foods HoldingsLtd

Taking into account the latest results, the current consensus from Nissin Foods HoldingsLtd's ten analysts is for revenues of JP¥775.1b in 2025. This would reflect a modest 3.1% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 6.2% to JP¥199. Before this earnings report, the analysts had been forecasting revenues of JP¥776.8b and earnings per share (EPS) of JP¥201 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of JP¥5,280, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Nissin Foods HoldingsLtd analyst has a price target of JP¥5,900 per share, while the most pessimistic values it at JP¥4,400. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Nissin Foods HoldingsLtd's revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Compare this to the 125 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.5% per year. So it's pretty clear that, while Nissin Foods HoldingsLtd's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Nissin Foods HoldingsLtd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Nissin Foods HoldingsLtd going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Nissin Foods HoldingsLtd's 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.