Nippon Telegraph and Telephone Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders might have noticed that Nippon Telegraph and Telephone Corporation (TSE:9432) filed its third-quarter result this time last week. The early response was not positive, with shares down 4.4% to JP¥145 in the past week. It was not a great result overall. While revenues of JP¥3.5t were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit JP¥3.55 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Nippon Telegraph and Telephone

Taking into account the latest results, Nippon Telegraph and Telephone's eleven analysts currently expect revenues in 2026 to be JP¥14t, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 8.0% to JP¥14.57. In the lead-up to this report, the analysts had been modelling revenues of JP¥14t and earnings per share (EPS) of JP¥14.73 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥173. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Nippon Telegraph and Telephone analyst has a price target of JP¥240 per share, while the most pessimistic values it at JP¥153. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Nippon Telegraph and Telephone's revenue growth is expected to slow, with the forecast 1.1% annualised growth rate until the end of 2026 being well below the historical 3.4% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Nippon Telegraph and Telephone.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nippon Telegraph and Telephone's revenue is expected to perform worse than 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.

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 Nippon Telegraph and Telephone going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Nippon Telegraph and Telephone (of which 1 shouldn't be ignored!) 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.