Nihon Kohden Corporation Just Missed Earnings - But Analysts Have Updated Their Models

Investors in Nihon Kohden Corporation (TSE:6849) had a good week, as its shares rose 2.6% to close at JP¥1,716 following the release of its first-quarter results. It looks like a pretty bad result, all things considered. Although revenues of JP¥50b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 66% to hit JP¥0.84 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Nihon Kohden from eight analysts is for revenues of JP¥236.1b in 2026. If met, it would imply an okay 3.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 9.2% to JP¥90.15. Before this earnings report, the analysts had been forecasting revenues of JP¥236.6b and earnings per share (EPS) of JP¥91.77 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.

See our latest analysis for Nihon Kohden

There were no changes to revenue or earnings estimates or the price target of JP¥2,240, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Nihon Kohden at JP¥3,500 per share, while the most bearish prices it at JP¥1,500. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 4.0% growth on an annualised basis. That is in line with its 3.5% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.8% per year. So although Nihon Kohden is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nihon Kohden's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥2,240, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Nihon Kohden. Long-term earnings power is much more important than next year's profits. We have forecasts for Nihon Kohden going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.