Nissha Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Nissha Co., Ltd. (TSE:7915) defied analyst predictions to release its half-yearly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 6.7% to hit JP¥100b. Nissha also reported a statutory profit of JP¥90.22, which was an impressive 32% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Nissha

Following the latest results, Nissha's six analysts are now forecasting revenues of JP¥191.5b in 2024. This would be an okay 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 996% to JP¥130. In the lead-up to this report, the analysts had been modelling revenues of JP¥189.9b and earnings per share (EPS) of JP¥116 in 2024. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.1% to JP¥2,380. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Nissha analyst has a price target of JP¥3,170 per share, while the most pessimistic values it at JP¥1,950. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nissha's past performance and to peers in the same industry. For example, we noticed that Nissha's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.9% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.1% per year. So it looks like Nissha is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nissha following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Nissha going out to 2026, and you can see them free on our platform here.

Even so, be aware that Nissha is showing 4 warning signs 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.