NEC Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Investors in NEC Corporation (TSE:6701) had a good week, as its shares rose 8.4% to close at JP¥3,476 following the release of its full-year results. It looks like a credible result overall - although revenues of JP¥3.4t were in line with what the analysts predicted, NEC surprised by delivering a statutory profit of JP¥132 per share, a notable 16% above expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the twelve analysts covering NEC are now predicting revenues of JP¥3.56t in 2026. If met, this would reflect an okay 4.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 15% to JP¥151. Before this earnings report, the analysts had been forecasting revenues of JP¥3.59t and earnings per share (EPS) of JP¥149 in 2026. 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.

View our latest analysis for NEC

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,499. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic NEC analyst has a price target of JP¥4,000 per share, while the most pessimistic values it at JP¥2,720. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await NEC shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of NEC'shistorical trends, as the 4.0% annualised revenue growth to the end of 2026 is roughly in line with the 3.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.1% annually. So it's pretty clear that NEC is expected to grow slower than similar companies in the same 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 NEC's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥3,499, with the latest estimates not enough to have an impact on their price targets.

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 NEC going out to 2028, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for NEC that 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.