Last week, you might have seen that NS Solutions Corporation (TSE:2327) released its annual result to the market. The early response was not positive, with shares down 3.1% to JP¥3,566 in the past week. The result was positive overall – although revenues of JP¥381b were in line with what the analysts predicted, NS Solutions surprised by delivering a statutory profit of JP¥169 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the nine analysts covering NS Solutions are now predicting revenues of JP¥409.5b in 2027. If met, this would reflect a credible 7.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.3% to JP¥176. In the lead-up to this report, the analysts had been modelling revenues of JP¥406.6b and earnings per share (EPS) of JP¥179 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.
View our latest analysis for NS Solutions
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,609. 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 NS Solutions, with the most bullish analyst valuing it at JP¥4,200 and the most bearish at JP¥2,640 per share. As you can see, analysts are not all in agreement on the stock’s future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 can infer from the latest estimates that forecasts expect a continuation of NS Solutions’historical trends, as the 7.4% annualised revenue growth to the end of 2027 is roughly in line with the 8.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.2% annually. So although NS Solutions is expected to maintain its revenue growth rate, it’s definitely expected to grow faster than the wider industry.
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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it’s tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥3,609, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. We have forecasts for NS Solutions going out to 2029, and you can see them free on our platform here.
You should always think about risks though. Case in point, we’ve spotted 2 warning signs for NS Solutions you should be aware of, and 1 of them is potentially serious.
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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.