Nippon Sanso Holdings Corporation (TSE:4091) Just Released Its Interim Results And Analysts Are Updating Their Estimates

Last week saw the newest half-yearly earnings release from Nippon Sanso Holdings Corporation (TSE:4091), an important milestone in the company's journey to build a stronger business. It looks like the results were a bit of a negative overall. While revenues of JP¥651b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.5% to hit JP¥67.07 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, Nippon Sanso Holdings' seven analysts currently expect revenues in 2026 to be JP¥1.32t, approximately in line with the last 12 months. Per-share earnings are expected to swell 13% to JP¥278. Before this earnings report, the analysts had been forecasting revenues of JP¥1.32t and earnings per share (EPS) of JP¥279 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.

See our latest analysis for Nippon Sanso Holdings

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,336. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Nippon Sanso Holdings, with the most bullish analyst valuing it at JP¥6,000 and the most bearish at JP¥4,850 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's pretty clear that there is an expectation that Nippon Sanso Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.6% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Nippon Sanso Holdings is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥5,336, 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 forecasts for Nippon Sanso Holdings going out to 2028, 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 Sanso Holdings 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.