Analysts Have Made A Financial Statement On Nissin Foods Holdings Co.,Ltd.'s (TSE:2897) Full-Year Report

It's been a good week for Nissin Foods Holdings Co.,Ltd. (TSE:2897) shareholders, because the company has just released its latest yearly results, and the shares gained 4.8% to JP¥3,288. It was a credible result overall, with revenues of JP¥777b and statutory earnings per share of JP¥184 both in line with analyst estimates, showing that Nissin Foods HoldingsLtd is executing in line with expectations. 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.

Our free stock report includes 1 warning sign investors should be aware of before investing in Nissin Foods HoldingsLtd. Read for free now.

Taking into account the latest results, the consensus forecast from Nissin Foods HoldingsLtd's ten analysts is for revenues of JP¥811.8b in 2026. This reflects a reasonable 4.5% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥190, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥801.8b and earnings per share (EPS) of JP¥197 in 2026. 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.

View our latest analysis for Nissin Foods HoldingsLtd

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥4,180, 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. The most optimistic Nissin Foods HoldingsLtd analyst has a price target of JP¥5,500 per share, while the most pessimistic values it at JP¥3,000. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nissin Foods HoldingsLtd's past performance and to peers in the same industry. We would highlight that Nissin Foods HoldingsLtd's revenue growth is expected to slow, with the forecast 4.5% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.2% annually. So it's pretty clear that, while Nissin Foods HoldingsLtd's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥4,180, with the latest estimates not enough to have an impact on their price targets.

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 Nissin Foods HoldingsLtd going out to 2028, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Nissin Foods HoldingsLtd that you should be aware 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.