Nomura Real Estate Holdings, Inc. Just Recorded A 18% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Nomura Real Estate Holdings, Inc. (TSE:3231) recently reported its half-year numbers. Revenues JP¥381b disappointed slightly, at2.7% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of JP¥246 coming in 18% above what was anticipated. 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 Nomura Real Estate Holdings after the latest results.

See our latest analysis for Nomura Real Estate Holdings

Taking into account the latest results, the consensus forecast from Nomura Real Estate Holdings' ten analysts is for revenues of JP¥783.1b in 2025. This reflects an okay 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 6.9% to JP¥418 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥785.0b and earnings per share (EPS) of JP¥414 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥4,569. 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¥5,100 and the most bearish at JP¥4,050 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.

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 Nomura Real Estate Holdings' growth to accelerate, with the forecast 9.7% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Nomura Real Estate Holdings is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still 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 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Nomura Real Estate Holdings (of which 1 is significant!) you should know about.

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

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.