Earnings Miss: Kawasaki Heavy Industries, Ltd. Missed EPS By 5.3% And Analysts Are Revising Their Forecasts

Kawasaki Heavy Industries, Ltd. (TSE:7012) just released its latest half-yearly report and things are not looking great. Results look to have been somewhat negative - revenue fell 3.5% short of analyst estimates at JP¥996b, and statutory earnings of JP¥107 per share missed forecasts by 5.3%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Kawasaki Heavy Industries from twelve analysts is for revenues of JP¥2.32t in 2026. If met, it would imply an okay 3.4% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to drop 13% to JP¥503 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥2.31t and earnings per share (EPS) of JP¥506 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.

See our latest analysis for Kawasaki Heavy Industries

There were no changes to revenue or earnings estimates or the price target of JP¥12,892, 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 Kawasaki Heavy Industries, with the most bullish analyst valuing it at JP¥15,800 and the most bearish at JP¥10,000 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Kawasaki Heavy Industries'historical trends, as the 7.0% annualised revenue growth to the end of 2026 is roughly in line with the 8.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.0% annually. So it's pretty clear that Kawasaki Heavy Industries is forecast to grow substantially 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. 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 Kawasaki Heavy Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kawasaki Heavy Industries analysts - 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 2 warning signs for Kawasaki Heavy Industries (of which 1 shouldn't be ignored!) 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.