Nihon Enterprise Co.,Ltd. (TSE:4829) has revised its earnings forecast for the fiscal year ending May 2026, citing weaker-than-expected performance in key business segments.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 5.33bn | JPY 4.58bn | -14.1% |
| Operating Profit | JPY 240M | JPY 85M | -64.6% |
| Ordinary Income | JPY 250M | JPY 110M | -56.0% |
| Net Profit | JPY 155M | JPY 45M | -71.0% |
| EPS | JPY 4.02/share | JPY 1.17/share | JPY -2.85/share |
The company attributed the downward revision to declining revenue in its "Content Services" division due to a revised advertising strategy, and slower growth in "Business Support Services" caused by IT advancements and labor shortages. Additionally, higher outsourcing costs for kit support further pressured profitability.
The revised forecast highlights declining profitability across core operations, raising concerns about the company’s ability to meet financial targets. Investors may need to monitor strategic adjustments aimed at improving operational efficiency and reversing the downward trend in earnings.