Kandenko Co.,Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Kandenko Co.,Ltd. (TSE:1942) defied analyst predictions to release its yearly results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 2.1% to hit JP¥672b. Statutory earnings per share (EPS) came in at JP¥207, some 5.9% above whatthe analysts had expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, KandenkoLtd's seven analysts are now forecasting revenues of JP¥688.7b in 2026. This would be a credible 2.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.6% to JP¥221. Before this earnings report, the analysts had been forecasting revenues of JP¥686.7b and earnings per share (EPS) of JP¥206 in 2026. So the consensus seems to have become somewhat more optimistic on KandenkoLtd's earnings potential following these results.

See our latest analysis for KandenkoLtd

There's been no major changes to the consensus price target of JP¥2,983, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 KandenkoLtd, with the most bullish analyst valuing it at JP¥3,480 and the most bearish at JP¥1,800 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the KandenkoLtd's past performance and to peers in the same industry. It's clear from the latest estimates that KandenkoLtd's rate of growth is expected to accelerate meaningfully, with the forecast 2.5% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.3% annually. KandenkoLtd 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around KandenkoLtd's earnings potential next year. 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¥2,983, 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. At Simply Wall St, we have a full range of analyst estimates for KandenkoLtd going out to 2028, and you can see them free on our platform here..

We also provide an overview of the KandenkoLtd Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.