Nippon Shokubai Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, Nippon Shokubai Co., Ltd. (TSE:4114) recently reported its quarterly numbers. It looks like a credible result overall - although revenues of JP¥102b were what the analysts expected, Nippon Shokubai surprised by delivering a (statutory) profit of JP¥33.59 per share, an impressive 48% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Nippon Shokubai

Taking into account the latest results, Nippon Shokubai's four analysts currently expect revenues in 2026 to be JP¥411.8b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decrease 3.5% to JP¥97.01 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥412.4b and earnings per share (EPS) of JP¥97.95 in 2026. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,765. 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 Shokubai, with the most bullish analyst valuing it at JP¥2,000 and the most bearish at JP¥1,620 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nippon Shokubai's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Nippon Shokubai's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.7% growth on an annualised basis. This is compared to a historical growth rate of 8.7% 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 5.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Nippon Shokubai 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¥1,765, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Nippon Shokubai analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.