As you might know, Nomura Real Estate Holdings, Inc. (TSE:3231) last week released its latest half-year, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with JP¥378b revenue coming in 2.9% lower than what the analystsexpected. Statutory earnings per share (EPS) of JP¥31.92 missed the mark badly, arriving some 23% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Nomura Real Estate Holdings' twelve analysts is for revenues of JP¥1.07t in 2027. This reflects a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 9.7% to JP¥101. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.07t and earnings per share (EPS) of JP¥102 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.
View our latest analysis for Nomura Real Estate Holdings
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,071. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Nomura Real Estate Holdings, with the most bullish analyst valuing it at JP¥1,280 and the most bearish at JP¥900 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Nomura Real Estate Holdings' growth to accelerate, with the forecast 34% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nomura Real Estate Holdings 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. The consensus price target held steady at JP¥1,071, 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 forecasts for Nomura Real Estate Holdings going out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Nomura Real Estate Holdings (1 doesn't sit too well with us!) that we have uncovered.
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