Analyst Estimates: Here's What Brokers Think Of Kurita Water Industries Ltd. (TSE:6370) After Its Third-Quarter Report

Shareholders might have noticed that Kurita Water Industries Ltd. (TSE:6370) filed its quarterly result this time last week. The early response was not positive, with shares down 5.9% to JP¥5,111 in the past week. Kurita Water Industries reported in line with analyst predictions, delivering revenues of JP¥105b and statutory earnings per share of JP¥260, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Kurita Water Industries

Taking into account the latest results, the current consensus from Kurita Water Industries' six analysts is for revenues of JP¥431.7b in 2026. This would reflect a solid 8.2% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 18% to JP¥332. In the lead-up to this report, the analysts had been modelling revenues of JP¥432.7b and earnings per share (EPS) of JP¥335 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥7,543. 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. The most optimistic Kurita Water Industries analyst has a price target of JP¥8,000 per share, while the most pessimistic values it at JP¥7,000. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We would highlight that Kurita Water Industries' revenue growth is expected to slow, with the forecast 6.5% annualised growth rate until the end of 2026 being well below the historical 10% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% per year. So it's pretty clear that, while Kurita Water Industries' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥7,543, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Kurita Water Industries analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether Kurita Water Industries is carrying too much debt, and whether its balance sheet is healthy, for free on our platform 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.