Nabtesco Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
It's been a good week for Nabtesco Corporation (TSE:6268) shareholders, because the company has just released its latest half-yearly results, and the shares gained 7.5% to JP¥3,007. Revenues were JP¥166b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥26.87, an impressive 43% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following last week's earnings report, Nabtesco's ten analysts are forecasting 2025 revenues to be JP¥337.2b, approximately in line with the last 12 months. Per-share earnings are expected to climb 12% to JP¥115. Before this earnings report, the analysts had been forecasting revenues of JP¥340.2b and earnings per share (EPS) of JP¥111 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Nabtesco
The consensus price target rose 5.7% to JP¥2,909, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 Nabtesco, with the most bullish analyst valuing it at JP¥3,200 and the most bearish at JP¥2,490 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. We would highlight that Nabtesco's revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2025 being well below the historical 3.9% 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 4.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Nabtesco is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nabtesco following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nabtesco's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Nabtesco going out to 2027, and you can see them free on our platform here.
Even so, be aware that Nabtesco is showing 1 warning sign in our investment analysis , 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.