Analysts Have Made A Financial Statement On Kikkoman Corporation's (TSE:2801) Third-Quarter Report

It's been a mediocre week for Kikkoman Corporation (TSE:2801) shareholders, with the stock dropping 11% to JP¥1,454 in the week since its latest third-quarter results. Revenues of JP¥180b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥17.45, missing estimates by 4.2%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Kikkoman

Taking into account the latest results, the current consensus from Kikkoman's ten analysts is for revenues of JP¥735.4b in 2026. This would reflect a reasonable 4.8% increase on its revenue over the past 12 months. Statutory per share are forecast to be JP¥66.60, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥731.9b and earnings per share (EPS) of JP¥66.64 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,872. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Kikkoman at JP¥2,440 per share, while the most bearish prices it at JP¥1,300. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Kikkoman's revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2026 being well below the historical 10% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% annually. So it's pretty clear that, while Kikkoman's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. We have forecasts for Kikkoman going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Kikkoman Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.