Results: CKD Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a good week for CKD Corporation (TSE:6407) shareholders, because the company has just released its latest annual results, and the shares gained 5.7% to JP¥2,210. The result was positive overall - although revenues of JP¥156b were in line with what the analysts predicted, CKD surprised by delivering a statutory profit of JP¥202 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 1 warning sign about CKD. View them for free.

Following the latest results, CKD's eleven analysts are now forecasting revenues of JP¥162.7b in 2026. This would be a reasonable 4.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 9.3% to JP¥221. In the lead-up to this report, the analysts had been modelling revenues of JP¥163.4b and earnings per share (EPS) of JP¥218 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.

View our latest analysis for CKD

There were no changes to revenue or earnings estimates or the price target of JP¥3,114, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on CKD, with the most bullish analyst valuing it at JP¥3,970 and the most bearish at JP¥1,980 per share. 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. We would highlight that CKD's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2026 being well below the historical 7.8% p.a. growth over the last five years. Compare this to the 257 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.4% per year. So it's pretty clear that, while CKD's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on CKD. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for CKD going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for CKD that you need to take into consideration.

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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.