Here's What Analysts Are Forecasting For Nippon Sanso Holdings Corporation (TSE:4091) After Its Third-Quarter Results

Nippon Sanso Holdings Corporation (TSE:4091) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of JP¥328b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.1% to hit JP¥65.34 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Nippon Sanso Holdings

After the latest results, the nine analysts covering Nippon Sanso Holdings are now predicting revenues of JP¥1.34t in 2026. If met, this would reflect a modest 3.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.1% to JP¥275. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.34t and earnings per share (EPS) of JP¥275 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.

The analysts reconfirmed their price target of JP¥5,027, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Nippon Sanso Holdings at JP¥5,700 per share, while the most bearish prices it at JP¥4,390. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Nippon Sanso Holdings' revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Nippon Sanso Holdings.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nippon Sanso Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥5,027, 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 Nippon Sanso Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Nippon Sanso Holdings analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Nippon Sanso Holdings , and understanding this should be part of your investment process.

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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.