Kinden Corporation (TSE:1944) Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?

Shareholders of Kinden Corporation (TSE:1944) will be pleased this week, given that the stock price is up 15% to JP¥6,046 following its latest half-year results. It was a workmanlike result, with revenues of JP¥321b coming in 2.0% ahead of expectations, and statutory earnings per share of JP¥236, in line with analyst appraisals. 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 Kinden after the latest results.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, Kinden's six analysts currently expect revenues in 2026 to be JP¥739.2b, approximately in line with the last 12 months. Statutory per share are forecast to be JP¥305, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥741.2b and earnings per share (EPS) of JP¥289 in 2026. So the consensus seems to have become somewhat more optimistic on Kinden's earnings potential following these results.

See our latest analysis for Kinden

The consensus price target was unchanged at JP¥5,517, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Kinden at JP¥6,900 per share, while the most bearish prices it at JP¥4,500. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Kinden shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kinden's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Kinden's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.0% growth on an annualised basis. This is compared to a historical growth rate of 5.7% over the past five years. Compare this to the 154 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.6% per year. So it's pretty clear that, while Kinden's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Kinden following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Kinden going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Kinden has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.