CKD Corporation (TSE:6407) Just Released Its Half-Year Results And Analysts Are Updating Their Estimates

CKD Corporation (TSE:6407) shareholders are probably feeling a little disappointed, since its shares fell 5.5% to JP¥2,541 in the week after its latest interim results. It was a workmanlike result, with revenues of JP¥76b coming in 2.1% ahead of expectations, and statutory earnings per share of JP¥125, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for CKD

Taking into account the latest results, the most recent consensus for CKD from ten analysts is for revenues of JP¥152.0b in 2025. If met, it would imply an okay 5.8% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 19% to JP¥190. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥152.3b and earnings per share (EPS) of JP¥194 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of JP¥3,637, showing that the business is executing well and in line with expectations. 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 CKD analyst has a price target of JP¥5,000 per share, while the most pessimistic values it at JP¥2,700. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CKD's past performance and to peers in the same industry. The analysts are definitely expecting CKD's growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that CKD is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥3,637, 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. We have estimates - from multiple CKD analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - CKD has 2 warning signs we think you should be aware of.

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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.