Analysts Have Made A Financial Statement On Nitto Denko Corporation's (TSE:6988) Yearly Report

As you might know, Nitto Denko Corporation (TSE:6988) recently reported its yearly numbers. Results were roughly in line with estimates, with revenues of JP¥1.0t and statutory earnings per share of JP¥196. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the consensus from Nitto Denko's ten analysts is for revenues of JP¥979.2b in 2026, which would reflect a small 3.4% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to fall 11% to JP¥178 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥986.2b and earnings per share (EPS) of JP¥187 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Nitto Denko

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥2,924, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Nitto Denko at JP¥3,800 per share, while the most bearish prices it at JP¥2,350. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nitto Denko's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 3.4% annualised decline to the end of 2026. That is a notable change from historical growth of 6.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Nitto Denko is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nitto Denko. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Nitto Denko going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Nitto Denko's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.