Nissan Chemical Corporation Just Missed Earnings - But Analysts Have Updated Their Models
Last week saw the newest interim earnings release from Nissan Chemical Corporation (TSE:4021), an important milestone in the company's journey to build a stronger business. It was a pretty mixed result, with revenues beating expectations to hit JP¥130b. Statutory earnings fell 5.8% short of analyst forecasts, reaching JP¥66.25 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, Nissan Chemical's nine analysts currently expect revenues in 2026 to be JP¥268.4b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be JP¥336, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥267.3b and earnings per share (EPS) of JP¥333 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.
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It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,941. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Nissan Chemical analyst has a price target of JP¥6,550 per share, while the most pessimistic values it at JP¥5,300. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Nissan Chemical is an easy business to forecast or the the analysts are all using similar assumptions.
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. We can infer from the latest estimates that forecasts expect a continuation of Nissan Chemical'shistorical trends, as the 3.9% annualised revenue growth to the end of 2026 is roughly in line with the 4.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.2% annually. So although Nissan Chemical is expected to maintain its revenue growth rate, it's only growing at about the rate of 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 in mind, we wouldn't be too quick to come to a conclusion on Nissan Chemical. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Nissan Chemical going out to 2028, and you can see them free on our platform here..
You can also see our analysis of Nissan Chemical's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.