Nippon Express Holdings,Inc. Just Missed Earnings - But Analysts Have Updated Their Models

The quarterly results for Nippon Express Holdings,Inc. (TSE:9147) were released last week, making it a good time to revisit its performance. It looks like a pretty bad result, all things considered. Although revenues of JP¥650b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 50% to hit JP¥80.90 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Nippon Express HoldingsInc

After the latest results, the nine analysts covering Nippon Express HoldingsInc are now predicting revenues of JP¥2.62t in 2025. If met, this would reflect a reasonable 6.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 112% to JP¥612. Before this earnings report, the analysts had been forecasting revenues of JP¥2.62t and earnings per share (EPS) of JP¥617 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥8,181, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Nippon Express HoldingsInc analyst has a price target of JP¥9,500 per share, while the most pessimistic values it at JP¥6,980. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Nippon Express HoldingsInc shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nippon Express HoldingsInc's past performance and to peers in the same industry. It's clear from the latest estimates that Nippon Express HoldingsInc's rate of growth is expected to accelerate meaningfully, with the forecast 5.0% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nippon Express HoldingsInc to grow faster than 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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. At Simply Wall St, we have a full range of analyst estimates for Nippon Express HoldingsInc going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Nippon Express HoldingsInc 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.