Nomura Real Estate Holdings, Inc. (TSE:3231) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for Nomura Real Estate Holdings, Inc. (TSE:3231) shareholders, because the company has just released its latest annual results, and the shares gained 9.0% to JP¥4,426. Nomura Real Estate Holdings reported JP¥735b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥392 beat expectations, being 3.6% higher than what the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Nomura Real Estate Holdings

Following the latest results, Nomura Real Estate Holdings' eleven analysts are now forecasting revenues of JP¥780.8b in 2025. This would be a satisfactory 6.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 3.8% to JP¥410. In the lead-up to this report, the analysts had been modelling revenues of JP¥774.6b and earnings per share (EPS) of JP¥407 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¥4,420, suggesting that the company has met expectations in its recent result. 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¥5,000 and the most bearish at JP¥3,850 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Nomura Real Estate Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Nomura Real Estate Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 6.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.3% 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 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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Nomura Real Estate Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Nomura Real Estate Holdings going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Nomura Real Estate Holdings (1 is concerning!) that we have uncovered.

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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.