Nissin Foods Holdings Co.,Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a mediocre week for Nissin Foods Holdings Co.,Ltd. (TSE:2897) shareholders, with the stock dropping 11% to JP¥3,090 in the week since its latest third-quarter results. It looks like a pretty bad result, all things considered. Although revenues of JP¥204b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 21% to hit JP¥48.79 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Nissin Foods HoldingsLtd

After the latest results, the ten analysts covering Nissin Foods HoldingsLtd are now predicting revenues of JP¥808.3b in 2026. If met, this would reflect a reasonable 5.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 23% to JP¥203. Before this earnings report, the analysts had been forecasting revenues of JP¥809.2b and earnings per share (EPS) of JP¥206 in 2026. 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¥4,755, suggesting that the company has met expectations in its recent result. 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¥5,600 per share, while the most pessimistic values 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 4.4% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% annually. 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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. We have forecasts for Nissin Foods HoldingsLtd going out to 2027, and you can see them free on our platform here.

Even so, be aware that Nissin Foods HoldingsLtd is showing 1 warning sign in our investment analysis , you should know about...

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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.