NH Foods Ltd. Beat Revenue Forecasts By 5.4%: Here's What Analysts Are Forecasting Next
It's been a sad week for NH Foods Ltd. (TSE:2282), who've watched their investment drop 12% to JP¥5,860 in the week since the company reported its first-quarter result. It was a workmanlike result, with revenues of JP¥385b coming in 5.4% ahead of expectations, and statutory earnings per share of JP¥114, in line with analyst appraisals. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following last week's earnings report, NH Foods' eight analysts are forecasting 2027 revenues to be JP¥1.49t, approximately in line with the last 12 months. Statutory earnings per share are predicted to step up 15% to JP¥420. Before this earnings report, the analysts had been forecasting revenues of JP¥1.49t and earnings per share (EPS) of JP¥419 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.
See our latest analysis for NH Foods
The analysts reconfirmed their price target of JP¥6,800, 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. There are some variant perceptions on NH Foods, with the most bullish analyst valuing it at JP¥8,100 and the most bearish at JP¥6,200 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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 pretty clear that there is an expectation that NH Foods' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 0.2% growth on an annualised basis. This is compared to a historical growth rate of 4.6% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that NH Foods is also expected to grow slower than other industry participants.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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. At Simply Wall St, we have a full range of analyst estimates for NH Foods going out to 2029, and you can see them free on our platform here..
It might also be worth considering whether NH Foods' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.