It's been a pretty great week for Nippon Express Holdings, Inc. (TSE:9147) shareholders, with its shares surging 11% to JP¥6,102 in the week since its latest third-quarter results. It was a pretty mixed result, with revenues beating expectations to hit JP¥711b. Statutory earnings fell 3.7% short of analyst forecasts, reaching JP¥99.37 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Nippon Express Holdings from nine analysts is for revenues of JP¥2.91t in 2027. If met, it would imply a modest 6.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 227% to JP¥543. Before this earnings report, the analysts had been forecasting revenues of JP¥2.88t and earnings per share (EPS) of JP¥496 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Nippon Express Holdings
There's been no major changes to the consensus price target of JP¥6,081, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Express Holdings analyst has a price target of JP¥6,540 per share, while the most pessimistic values it at JP¥5,600. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Nippon Express Holdings is an easy business to forecast or the the analysts are all using similar assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Nippon Express Holdings' growth to accelerate, with the forecast 5.2% annualised growth to the end of 2027 ranking favourably alongside historical growth of 3.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nippon Express Holdings to grow faster than the wider industry.
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 Nippon Express Holdings following these results. 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¥6,081, 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 Nippon Express Holdings going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Nippon Express Holdings you should be aware of.
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