Nippon Carbide Industries Co., Inc. (TSE:4064) Released Earnings Last Week And Analysts Lifted Their Price Target To JP¥4,500

Investors in Nippon Carbide Industries Co., Inc. (TSE:4064) had a good week, as its shares rose 8.0% to close at JP¥1,920 following the release of its third-quarter results. Results were roughly in line with estimates, with revenues of JP¥12b and statutory earnings per share of JP¥106. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Nippon Carbide Industries after the latest results.

See our latest analysis for Nippon Carbide Industries

Taking into account the latest results, the consensus forecast from Nippon Carbide Industries' lone analyst is for revenues of JP¥53.0b in 2026. This reflects a notable 15% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥236, roughly flat on the last 12 months. In the lead-up to this report, the analyst had been modelling revenues of JP¥54.0b and earnings per share (EPS) of JP¥231 in 2026. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 13% to JP¥4,500, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Nippon Carbide Industries' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 11% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 0.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.0% annually. So it looks like Nippon Carbide Industries is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nippon Carbide Industries following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Nippon Carbide Industries going out as far as 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Nippon Carbide Industries 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.