NEXTAGE Co., Ltd. Just Beat Revenue By 14%: Here's What Analysts Think Will Happen Next

NEXTAGE Co., Ltd. (TSE:3186) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a positive result, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 14% higher than the analysts had forecast, at JP¥309b, while EPS of JP¥39.11 beat analyst models by 8.9%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NEXTAGE after the latest results.

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Taking into account the latest results, NEXTAGE's eight analysts currently expect revenues in 2025 to be JP¥595.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 46% to JP¥128. In the lead-up to this report, the analysts had been modelling revenues of JP¥593.7b and earnings per share (EPS) of JP¥126 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.

View our latest analysis for NEXTAGE

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 8.7% to JP¥2,008. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on NEXTAGE, with the most bullish analyst valuing it at JP¥3,100 and the most bearish at JP¥1,300 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.6% by the end of 2025. This indicates a significant reduction from annual growth of 20% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.4% annually for the foreseeable future. It's pretty clear that NEXTAGE's revenues are expected to perform substantially worse 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that NEXTAGE's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for NEXTAGE going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for NEXTAGE (1 is concerning) you should be aware of.

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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.