Earnings Miss: Nissin Foods Holdings Co.,Ltd. Missed EPS By 29% And Analysts Are Revising Their Forecasts

Last week, you might have seen that Nissin Foods Holdings Co.,Ltd. (TSE:2897) released its half-year result to the market. The early response was not positive, with shares down 3.2% to JP¥3,894 in the past week. It looks like a pretty bad result, all things considered. Although revenues of JP¥378b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 29% to hit JP¥44.08 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Nissin Foods HoldingsLtd

After the latest results, the ten analysts covering Nissin Foods HoldingsLtd are now predicting revenues of JP¥779.9b in 2025. If met, this would reflect an okay 2.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 15% to JP¥196. In the lead-up to this report, the analysts had been modelling revenues of JP¥781.6b and earnings per share (EPS) of JP¥200 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¥5,030, 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. Currently, the most bullish analyst values Nissin Foods HoldingsLtd at JP¥5,800 per share, while the most bearish prices it at JP¥4,000. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Nissin Foods HoldingsLtd's revenue growth is expected to slow, with the forecast 5.1% annualised growth rate until the end of 2025 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 3.7% 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 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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥5,030, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Nissin Foods HoldingsLtd going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Nissin Foods HoldingsLtd's balance sheet, and whether we think Nissin Foods HoldingsLtd is carrying too much debt, for free 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.