Results: Nihon Kohden Corporation Delivered A Surprise Loss And Now Analysts Have New Forecasts

As you might know, Nihon Kohden Corporation (TSE:6849) recently reported its half-yearly numbers. Revenues of JP¥103b beat expectations by 2.3%. Unfortunately statutory earnings per share (EPS) fell well short of the mark, turning in a loss of JP¥1.81 compared to previous analyst expectations of a profit. 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.

Check out our latest analysis for Nihon Kohden

Taking into account the latest results, the consensus forecast from Nihon Kohden's seven analysts is for revenues of JP¥228.0b in 2025. This reflects a reasonable 3.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 55% to JP¥88.07. In the lead-up to this report, the analysts had been modelling revenues of JP¥226.1b and earnings per share (EPS) of JP¥89.89 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 6.0% to JP¥2,321, suggesting the revised estimates are not indicative of a weaker long-term future for the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Nihon Kohden, with the most bullish analyst valuing it at JP¥3,500 and the most bearish at JP¥1,700 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Nihon Kohden's growth to accelerate, with the forecast 6.2% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. Nihon Kohden is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Nihon Kohden going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Nihon Kohden .

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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.