Nippon Kodoshi Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for Nippon Kodoshi Corporation (TSE:3891) shareholders, because the company has just released its latest yearly results, and the shares gained 4.0% to JP¥1,976. Revenues of JP¥15b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥139, missing estimates by 7.7%. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Nippon Kodoshi after the latest results.

View our latest analysis for Nippon Kodoshi

Following the latest results, Nippon Kodoshi's sole analyst are now forecasting revenues of JP¥16.0b in 2025. This would be an okay 7.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 28% to JP¥179. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥16.5b and earnings per share (EPS) of JP¥169 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analyst is now more bullish on the company's earnings power.

There's been a 8.0% lift in the price target to JP¥2,700, with the analyst signalling that the higher earnings forecasts are more relevant to the business than the weaker revenue estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Nippon Kodoshi's growth to accelerate, with the forecast 7.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.2% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.1% per year. Nippon Kodoshi is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nippon Kodoshi following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Even so, long term profitability is more important for the value creation process. We note an upgrade to the price target, suggesting that the analyst 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. We have analyst estimates for Nippon Kodoshi going out as far as 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Nippon Kodoshi 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.