Results: NEC Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

NEC Corporation (TSE:6701) shareholders are probably feeling a little disappointed, since its shares fell 4.5% to JP¥4,101 in the week after its latest yearly results. NEC reported JP¥3.6t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥203 beat expectations, being 8.8% higher than what the analysts 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NEC after the latest results.Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.TSE:6701 Earnings and Revenue Growth May 1st 2026 Taking into account the latest results, the current consensus from NEC's eleven analysts is for revenues of JP¥3.75t in 2027. This would reflect a credible 4.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 9.1% to JP¥222. Before this earnings report, the analysts had been forecasting revenues of JP¥3.78t and earnings per share (EPS) of JP¥220 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 NEC There were no changes to revenue or earnings estimates or the price target of JP¥6,008, suggesting that the company has met expectations in its recent result. 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 NEC analyst has a price target of JP¥8,000 per share, while the most pessimistic values it at JP¥5,000. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation. Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that NEC's rate of growth is expected to accelerate meaningfully, with the forecast 4.7% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% annually. NEC is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors. 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥6,008, with the latest estimates not enough to have an impact on their price targets. With that in mind, we wouldn't be too quick to come to a conclusion on NEC. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple NEC analysts - 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 1 warning sign for NEC you should be aware of. Valuation is complex, but we're here to simplify it.Discover if NEC might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free Analysis