Analysts Are Updating Their Nomura Real Estate Holdings, Inc. (TSE:3231) Estimates After Its Full-Year Results

Last week, you might have seen that Nomura Real Estate Holdings, Inc. (TSE:3231) released its annual result to the market. The early response was not positive, with shares down 4.5% to JP¥853 in the past week. Nomura Real Estate Holdings reported JP¥758b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥86.77 beat expectations, being 2.9% higher than what the analysts expected. 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.

We've discovered 2 warning signs about Nomura Real Estate Holdings. View them for free.

Following the latest results, Nomura Real Estate Holdings' ten analysts are now forecasting revenues of JP¥875.1b in 2026. This would be a solid 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 2.4% to JP¥89.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥835.0b and earnings per share (EPS) of JP¥91.04 in 2026. So it's pretty clear consensus is mixed on Nomura Real Estate Holdings after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

Check out our latest analysis for Nomura Real Estate Holdings

The consensus price target was unchanged at JP¥939, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Nomura Real Estate Holdings, with the most bullish analyst valuing it at JP¥1,080 and the most bearish at JP¥800 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nomura Real Estate Holdings' past performance and to peers in the same industry. The analysts are definitely expecting Nomura Real Estate Holdings' growth to accelerate, with the forecast 16% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nomura Real Estate Holdings to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

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. We have forecasts for Nomura Real Estate Holdings going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Nomura Real Estate Holdings you should be aware of, and 1 of them can't be ignored.

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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.