Nichicon Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Shareholders might have noticed that Nichicon Corporation (TSE:6996) filed its quarterly result this time last week. The early response was not positive, with shares down 2.7% to JP¥1,300 in the past week. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at JP¥40b, statutory earnings beat expectations by a notable 51%, coming in at JP¥17.68 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Nichicon's seven analysts are now forecasting revenues of JP¥183.5b in 2026. This would be a reasonable 5.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.0% to JP¥86.58. Before this earnings report, the analysts had been forecasting revenues of JP¥183.6b and earnings per share (EPS) of JP¥85.12 in 2026. 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.

Check out our latest analysis for Nichicon

There were no changes to revenue or earnings estimates or the price target of JP¥1,384, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Nichicon analyst has a price target of JP¥1,500 per share, while the most pessimistic values it at JP¥1,250. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Nichicon 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 pretty clear that there is an expectation that Nichicon's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Compare this to the 184 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.2% per year. Factoring in the forecast slowdown in growth, it looks like Nichicon is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥1,384, 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. We have forecasts for Nichicon going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Nichicon's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.