Nihon Kohden Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Nihon Kohden Corporation (TSE:6849) released its half-yearly result to the market. The early response was not positive, with shares down 5.3% to JP¥1,608 in the past week. It looks like a credible result overall - although revenues of JP¥108b were in line with what the analysts predicted, Nihon Kohden surprised by delivering a statutory profit of JP¥26.90 per share, a notable 15% above 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Nihon Kohden's seven analysts is for revenues of JP¥235.5b in 2026. This reflects a modest 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 20% to JP¥88.83 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥236.2b and earnings per share (EPS) of JP¥89.61 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.

View our latest analysis for Nihon Kohden

The analysts reconfirmed their price target of JP¥2,239, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Nihon Kohden at JP¥3,500 per share, while the most bearish prices it at JP¥1,600. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nihon Kohden's past performance and to peers in the same industry. It's clear from the latest estimates that Nihon Kohden's rate of growth is expected to accelerate meaningfully, with the forecast 4.2% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 5.8% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Nihon Kohden is expected to grow slower than the wider 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥2,239, 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 Nihon Kohden going out to 2028, and you can see them free on our platform here.

We also provide an overview of the Nihon Kohden Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.