Nippon Telegraph and Telephone Corporation (TSE:9432) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

It's been a good week for Nippon Telegraph and Telephone Corporation (TSE:9432) shareholders, because the company has just released its latest interim results, and the shares gained 2.7% to JP¥151. It was a credible result overall, with revenues of JP¥6.6t and statutory earnings per share of JP¥3.34 both in line with analyst estimates, showing that Nippon Telegraph and Telephone is executing in line with expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Nippon Telegraph and Telephone

Taking into account the latest results, Nippon Telegraph and Telephone's twelve analysts currently expect revenues in 2025 to be JP¥14t, approximately in line with the last 12 months. Statutory per share are forecast to be JP¥13.79, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥14t and earnings per share (EPS) of JP¥13.86 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥176, 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. There are some variant perceptions on Nippon Telegraph and Telephone, with the most bullish analyst valuing it at JP¥240 and the most bearish at JP¥155 per share. 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.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.9% by the end of 2025. This indicates a significant reduction from annual growth of 3.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Nippon Telegraph and Telephone is expected to lag 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. 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. The consensus price target held steady at JP¥176, 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. At Simply Wall St, we have a full range of analyst estimates 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 1 warning sign for Nippon Telegraph and Telephone 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.