Kyudenko Corporation Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that Kyudenko Corporation (TSE:1959) filed its annual result this time last week. The early response was not positive, with shares down 2.3% to JP¥4,799 in the past week. Revenues were in line with forecasts, at JP¥474b, although statutory earnings per share came in 10% below what the analysts expected, at JP¥408 per share. 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 Kyudenko after the latest results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Kyudenko. Read for free now.

Taking into account the latest results, the consensus forecast from Kyudenko's six analysts is for revenues of JP¥498.1b in 2026. This reflects a satisfactory 5.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 14% to JP¥467. In the lead-up to this report, the analysts had been modelling revenues of JP¥506.8b and earnings per share (EPS) of JP¥480 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for Kyudenko

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥6,440, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. Currently, the most bullish analyst values Kyudenko at JP¥7,000 per share, while the most bearish prices it at JP¥5,800. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Kyudenko is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Kyudenko's growth to accelerate, with the forecast 5.1% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Kyudenko to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Kyudenko going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Kyudenko you should know about.

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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.