Nissin Foods Holdings Co.,Ltd. Just Missed EPS By 25%: Here's What Analysts Think Will Happen Next

Explore Nissin Foods HoldingsLtd's Fair Values from the Community and select yours

The analysts might have been a bit too bullish on Nissin Foods Holdings Co.,Ltd. (TSE:2897), given that the company fell short of expectations when it released its quarterly results last week. Results showed a clear earnings miss, with JP¥177b revenue coming in 6.7% lower than what the analystsexpected. Statutory earnings per share (EPS) of JP¥38.37 missed the mark badly, arriving some 25% below what was expected. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, Nissin Foods HoldingsLtd's nine analysts are now forecasting revenues of JP¥798.3b in 2026. This would be a credible 3.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.8% to JP¥187. Before this earnings report, the analysts had been forecasting revenues of JP¥804.3b and earnings per share (EPS) of JP¥193 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Nissin Foods HoldingsLtd

The average price target fell 6.4% to JP¥3,889, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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¥5,200 per share, while the most bearish prices it at JP¥2,900. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Nissin Foods HoldingsLtd's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.3% per year. 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 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. We have forecasts for Nissin Foods HoldingsLtd going out to 2028, 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.