Kanamoto Co.,Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Kanamoto Co.,Ltd. (TSE:9678) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of JP¥54b were in line with what the analysts predicted, KanamotoLtd surprised by delivering a statutory profit of JP¥59.36 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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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After the latest results, the three analysts covering KanamotoLtd are now predicting revenues of JP¥223.0b in 2026. If met, this would reflect a credible 4.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.8% to JP¥329. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥223.4b and earnings per share (EPS) of JP¥308 in 2026. So the consensus seems to have become somewhat more optimistic on KanamotoLtd's earnings potential following these results.

See our latest analysis for KanamotoLtd

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.7% to JP¥4,200.

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 KanamotoLtd'shistorical trends, as the 3.3% annualised revenue growth to the end of 2026 is roughly in line with the 3.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 4.0% annually. So although KanamotoLtd is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards KanamotoLtd following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that KanamotoLtd's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for KanamotoLtd going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with KanamotoLtd , and understanding it should be part of your investment process.

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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.