Earnings Update: Here's Why Analysts Just Lifted Their Nippon Television Holdings, Inc. (TSE:9404) Price Target To JP¥2,375

Last week, you might have seen that Nippon Television Holdings, Inc. (TSE:9404) released its first-quarter result to the market. The early response was not positive, with shares down 3.5% to JP¥2,217 in the past week. It was a workmanlike result, with revenues of JP¥106b coming in 2.9% ahead of expectations, and statutory earnings per share of JP¥136, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Nippon Television Holdings

Following the latest results, Nippon Television Holdings' six analysts are now forecasting revenues of JP¥440.6b in 2025. This would be a reasonable 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.4% to JP¥156. In the lead-up to this report, the analysts had been modelling revenues of JP¥435.8b and earnings per share (EPS) of JP¥157 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.1% to JP¥2,375. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Nippon Television Holdings, with the most bullish analyst valuing it at JP¥2,900 and the most bearish at JP¥2,050 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. The analysts are definitely expecting Nippon Television Holdings' growth to accelerate, with the forecast 2.8% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.0% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Nippon Television Holdings is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Television Holdings analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Nippon Television Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.

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