Earnings Miss: Nippon Television Holdings, Inc. Missed EPS By 12% And Analysts Are Revising Their Forecasts

Nippon Television Holdings, Inc. (TSE:9404) shareholders are probably feeling a little disappointed, since its shares fell 7.5% to JP¥2,121 in the week after its latest full-year results. Revenues were in line with forecasts, at JP¥424b, although statutory earnings per share came in 12% below what the analysts expected, at JP¥136 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Nippon Television Holdings

Taking into account the latest results, the most recent consensus for Nippon Television Holdings from five analysts is for revenues of JP¥432.2b in 2025. If met, it would imply a credible 2.0% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 9.8% to JP¥152. In the lead-up to this report, the analysts had been modelling revenues of JP¥433.6b and earnings per share (EPS) of JP¥150 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥2,152, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Nippon Television Holdings analyst has a price target of JP¥2,800 per share, while the most pessimistic values it at JP¥1,500. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. For example, we noticed that Nippon Television Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.0% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.0% annually for the foreseeable future. So although Nippon Television Holdings' revenue growth is expected to improve, it is still expected to grow slower than the 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nippon Television Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥2,152, 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. At Simply Wall St, we have a full range of analyst estimates for Nippon Television Holdings going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Nippon Television Holdings' 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.