Nitto Denko Corporation (TSE:6988) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates

It's been a sad week for Nitto Denko Corporation (TSE:6988), who've watched their investment drop 10% to JP¥3,003 in the week since the company reported its annual result. Results were roughly in line with estimates, with revenues of JP¥1.0t and statutory earnings per share of JP¥197. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Following the latest results, Nitto Denko's eleven analysts are now forecasting revenues of JP¥1.05t in 2027. This would be an okay 2.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.5% to JP¥213. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.06t and earnings per share (EPS) of JP¥212 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 Nitto Denko The analysts reconfirmed their price target of JP¥3,766, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Nitto Denko, with the most bullish analyst valuing it at JP¥5,000 and the most bearish at JP¥2,700 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. 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. It's pretty clear that there is an expectation that Nitto Denko's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 5.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Nitto Denko. 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nitto Denko's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥3,766, 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 estimates - from multiple Nitto Denko analysts - going out to 2029, and you can see them free on our platform here. You can also see our analysis of Nitto Denko's Board and CEO remuneration and experience, and whether company insiders have been buying stock.