Earnings Miss: Nissin Foods Holdings Co.,Ltd. Missed EPS By 9.3% And Analysts Are Revising Their Forecasts

As you might know, Nissin Foods Holdings Co.,Ltd. (TSE:2897) recently reported its half-year numbers. It looks like the results were a bit of a negative overall. While revenues of JP¥373b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 9.3% to hit JP¥39.60 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, Nissin Foods HoldingsLtd's ten analysts are forecasting 2026 revenues to be JP¥784.7b, approximately in line with the last 12 months. Per-share earnings are expected to increase 4.7% to JP¥177. In the lead-up to this report, the analysts had been modelling revenues of JP¥788.2b and earnings per share (EPS) of JP¥182 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for Nissin Foods HoldingsLtd

The consensus price target held steady at JP¥3,435, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Nissin Foods HoldingsLtd, with the most bullish analyst valuing it at JP¥4,800 and the most bearish at JP¥2,800 per share. 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.

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 3.4% annualised growth rate until the end of 2026 being well below the historical 10% p.a. growth over the last five years. Compare this to the 122 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.3% per year. Factoring in the forecast slowdown in growth, it looks like Nissin Foods HoldingsLtd is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nissin Foods HoldingsLtd. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥3,435, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Nissin Foods HoldingsLtd , and understanding this should be part of your investment process.

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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.