Nippon Telegraph & Telephone Corp (NTT), a name synonymous with telecommunications history, often gets overlooked by the average investor. This Japanese giant, a dominant force in its home market, is listed on the PINK exchange (NPPXF), which might not exactly attract those seeking a thrilling investment. However, what if we told you there's a hidden gem buried within NTT's financials, a subtle hint of an impending explosion that could ripple through the industry and potentially launch your portfolio into the stratosphere? Prepare yourself, because we're about to uncover a revelation that seems to have eluded even the sharpest Wall Street analysts.

The secret lies in NTT's latest quarterly financial data, and it's not about their remarkable revenue growth or their consistently rising EBITDA. It's about a much more nuanced aspect, a strategic shift that reveals a lot about the company's future aspirations. Recall the recent NTT stock split on June 29, 2023 – a 25:1 split. While a bold move, it seemed, at first glance, like a typical way to enhance liquidity and draw in smaller investors.

But when we examine this split alongside a closer inspection of their balance sheet, a fascinating theory emerges. Take note of the "commonStockSharesOutstanding" for the 2024-03-31 quarter. It's a colossal 84,799,194,212 shares. Now, contrast that with the previous year, when the figure lingered around 109,368,000,900. This is a substantial reduction, even after accounting for the stock split. The question arises: Why would NTT decrease its outstanding shares after a split aimed at increasing them?

"This is where things get captivating. The decrease in outstanding shares generally signifies one thing: buybacks. Companies buy back shares to boost the value of the remaining shares, signaling their confidence in their future performance. What's extraordinary is that NTT is doing this *after* a stock split, magnifying the impact. This double maneuver delivers a clear message that they believe their stock is undervalued and poised for substantial growth."

Let's delve into the figures. In 2023, NTT's net income was approximately $1,213,116,000,000. With a lowered share count of 84,799,194,212, their potential earnings per share (EPS) could be considerably higher than the previous year's. This potential EPS leap could be the catalyst for the surge we mentioned earlier. Investors adore a favorable EPS surprise, and the market typically responds accordingly.

Potential Earnings Per Share (EPS) Growth

The chart below illustrates a hypothetical increase in NTT's EPS due to the reduced share count.

Beyond mere numbers, NTT is strategically positioning itself for a commanding role in the telecommunications sector. They are a powerhouse in 5G technology and the Internet of Things (IoT), both areas poised for explosive growth in the coming years. Their decisive buyback strategy, coupled with their expertise in these future-shaping technologies, suggests they are not just content with riding the wave; they are determined to be the force that generates it.

"Fun Fact: Did you know that NTT pioneered the world's first optical fiber communication system? This innovative drive, paired with their recent financial strategies, paints a picture of a company ready to revolutionize the industry."

While Wall Street remains focused on conventional metrics, we've unveiled a strategic undercurrent that could redefine NTT's path. This hidden gem might not remain concealed for long, and the approaching explosion might be far more impactful than anyone expected.