Earnings Miss: Nippon Telegraph and Telephone Corporation Missed EPS By 8.5% And Analysts Are Revising Their Forecasts

The yearly results for Nippon Telegraph and Telephone Corporation (TSE:9432) were released last week, making it a good time to revisit its performance. Revenues of JP¥14t were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥11.96, missing estimates by 8.5%. The analysts 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Nippon Telegraph and Telephone from twelve analysts is for revenues of JP¥14t in 2026. If met, it would imply a reasonable 3.0% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 14% to JP¥13.80. Before this earnings report, the analysts had been forecasting revenues of JP¥14t and earnings per share (EPS) of JP¥14.06 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.

See our latest analysis for Nippon Telegraph and Telephone

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥168. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Nippon Telegraph and Telephone at JP¥215 per share, while the most bearish prices it at JP¥150. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 3.0% growth on an annualised basis. That is in line with its 3.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.7% annually. It's clear that while Nippon Telegraph and Telephone's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Nippon Telegraph and Telephone going out to 2028, and you can see them free on our platform here..

You still need to take note of risks, for example - Nippon Telegraph and Telephone has 2 warning signs we think 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.