Nippon Sanso Holdings Corporation Just Beat EPS By 6.5%: Here's What Analysts Think Will Happen Next

Nippon Sanso Holdings Corporation (TSE:4091) just released its latest first-quarter results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.8% to hit JP¥329b. Statutory earnings per share (EPS) came in at JP¥67.19, some 6.5% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 eight analysts covering Nippon Sanso Holdings are now predicting revenues of JP¥1.31t in 2025. If met, this would reflect a credible 2.8% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥256, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.31t and earnings per share (EPS) of JP¥255 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of JP¥5,001, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Nippon Sanso Holdings analyst has a price target of JP¥5,450 per share, while the most pessimistic values it at JP¥4,700. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We would highlight that Nippon Sanso Holdings' revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2025 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 5.7% 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 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 Nippon Sanso Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥5,001, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Nippon Sanso Holdings going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Nippon Sanso Holdings you should be aware of.

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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.

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