Nippon Yusen Kabushiki Kaisha Just Missed Earnings - But Analysts Have Updated Their Models
It's been a sad week for Nippon Yusen Kabushiki Kaisha (TSE:9101), who've watched their investment drop 12% to JP¥6,635 in the week since the company reported its half-year result. It was not a great result overall. Although revenues beat expectations, hitting JP¥1.5t, statutory earnings missed analyst forecasts by 15%, coming in at just JP¥338 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Nippon Yusen Kabushiki Kaisha's eleven analysts are now forecasting revenues of JP¥2.83t in 2027. This would be a satisfactory 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decline 14% to JP¥675 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥2.83t and earnings per share (EPS) of JP¥675 in 2027. 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.
Check out our latest analysis for Nippon Yusen Kabushiki Kaisha
The analysts reconfirmed their price target of JP¥6,792, showing that the business is executing well and in line with expectations. 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 Yusen Kabushiki Kaisha analyst has a price target of JP¥8,800 per share, while the most pessimistic values it at JP¥3,810. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. It's clear from the latest estimates that Nippon Yusen Kabushiki Kaisha's rate of growth is expected to accelerate meaningfully, with the forecast 6.2% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 2.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Nippon Yusen Kabushiki Kaisha is expected to grow much faster than its 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Nippon Yusen Kabushiki Kaisha going out to 2029, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Nippon Yusen Kabushiki Kaisha (1 is potentially serious) you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.