Nifco Inc. Just Missed EPS By 53%: Here's What Analysts Think Will Happen Next
Nifco Inc. (TSE:7988) shareholders are probably feeling a little disappointed, since its shares fell 5.7% to JP¥4,936 in the week after its latest first-quarter results. It looks like a pretty bad result, all things considered. Although revenues of JP¥91b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 53% to hit JP¥47.73 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Nifco's seven analysts are now forecasting revenues of JP¥368.6b in 2027. This would be an okay 3.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 13% to JP¥400. In the lead-up to this report, the analysts had been modelling revenues of JP¥368.3b and earnings per share (EPS) of JP¥400 in 2027. 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.
Check out our latest analysis for Nifco
The analysts reconfirmed their price target of JP¥5,593, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Nifco at JP¥6,000 per share, while the most bearish prices it at JP¥4,800. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Nifco is an easy business to forecast or the the analysts are all using similar assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Nifco's revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2027 being well below the historical 5.6% p.a. growth over the last five years. Compare this to the 102 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.1% per year. So it's pretty clear that, while Nifco's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
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. The consensus price target held steady at JP¥5,593, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Nifco analysts - going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Nifco has 1 warning sign 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.