Earnings Miss: Shin Nippon Biomedical Laboratories, Ltd. Missed EPS By 88% And Analysts Are Revising Their Forecasts

The analysts might have been a bit too bullish on Shin Nippon Biomedical Laboratories, Ltd. (TSE:2395), given that the company fell short of expectations when it released its first-quarter results last week. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of JP¥5.5b missed by 13%, and statutory earnings per share of JP¥2.93 fell short of forecasts by 88%. 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.

View our latest analysis for Shin Nippon Biomedical Laboratories

Taking into account the latest results, the current consensus from Shin Nippon Biomedical Laboratories' three analysts is for revenues of JP¥29.3b in 2025. This would reflect a meaningful 12% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decline 14% to JP¥88.56 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥29.3b and earnings per share (EPS) of JP¥90.66 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target fell 7.6% to JP¥1,340, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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 Shin Nippon Biomedical Laboratories, with the most bullish analyst valuing it at JP¥1,500 and the most bearish at JP¥1,180 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 14% per year. So although Shin Nippon Biomedical Laboratories is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 Shin Nippon Biomedical Laboratories. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Shin Nippon Biomedical Laboratories' future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Shin Nippon Biomedical Laboratories going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Shin Nippon Biomedical Laboratories (including 1 which is a bit unpleasant) .

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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.