Results: Nitto Denko Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for Nitto Denko Corporation (TSE:6988) shareholders, because the company has just released its latest interim results, and the shares gained 4.5% to JP¥2,537. It looks like a credible result overall - although revenues of JP¥522b were what the analysts expected, Nitto Denko surprised by delivering a (statutory) profit of JP¥62.47 per share, an impressive 26% 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nitto Denko after the latest results.

See our latest analysis for Nitto Denko

Following last week's earnings report, Nitto Denko's eleven analysts are forecasting 2025 revenues to be JP¥968.7b, approximately in line with the last 12 months. Statutory earnings per share are forecast to sink 11% to JP¥176 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥971.2b and earnings per share (EPS) of JP¥179 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.

The analysts reconfirmed their price target of JP¥2,759, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Nitto Denko analyst has a price target of JP¥3,200 per share, while the most pessimistic values it at JP¥2,000. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Nitto Denko shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.8% by the end of 2025. This indicates a significant reduction from annual growth of 6.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.2% annually for the foreseeable future. It's pretty clear that Nitto Denko's revenues are expected to perform substantially worse than the wider industry.

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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Nitto Denko going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Nitto Denko that we have uncovered.

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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.