Kurita Water Industries Ltd. Just Missed EPS By 43%: Here's What Analysts Think Will Happen Next

Shareholders of Kurita Water Industries Ltd. (TSE:6370) will be pleased this week, given that the stock price is up 12% to JP¥5,269 following its latest yearly results. It looks like a pretty bad result, all things considered. Although revenues of JP¥409b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 43% to hit JP¥181 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Kurita Water Industries' six analysts is for revenues of JP¥419.0b in 2026. This would reflect a credible 2.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 78% to JP¥320. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥426.8b and earnings per share (EPS) of JP¥329 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.

View our latest analysis for Kurita Water Industries

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥6,986, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. 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¥5,000. 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 Kurita Water Industries shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kurita Water Industries' past performance and to peers in the same industry. We would highlight that Kurita Water Industries' revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Kurita Water Industries is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kurita Water Industries. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kurita Water Industries' revenue is expected to perform worse 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.

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. At Simply Wall St, we have a full range of analyst estimates for Kurita Water Industries going out to 2028, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Kurita Water Industries .

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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.