Nippon Kodoshi Corporation Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Nippon Kodoshi Corporation (TSE:3891) shareholders are probably feeling a little disappointed, since its shares fell 2.6% to JP¥1,879 in the week after its latest quarterly results. Revenues came in 5.5% below expectations, at JP¥4.0b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥139 being roughly in line with analyst estimates. The analyst 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 analyst has changed their mind on Nippon Kodoshi after the latest results.

See our latest analysis for Nippon Kodoshi

Taking into account the latest results, the most recent consensus for Nippon Kodoshi from lone analyst is for revenues of JP¥17.0b in 2026. If met, it would imply a credible 8.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 27% to JP¥202. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥17.5b and earnings per share (EPS) of JP¥230 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

It'll come as no surprise then, to learn that the analyst has cut their price target 6.7% to JP¥2,800.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Nippon Kodoshi's rate of growth is expected to accelerate meaningfully, with the forecast 6.3% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Nippon Kodoshi is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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.

Even so, be aware that Nippon Kodoshi is showing 1 warning sign in our investment analysis , you should know about...

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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.