The Kikkoman Corporation (TSE:2801) Half-Year Results Are Out And Analysts Have Published New Forecasts

Last week saw the newest half-yearly earnings release from Kikkoman Corporation (TSE:2801), an important milestone in the company's journey to build a stronger business. Revenues of JP¥356b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥17.55, missing estimates by 3.1%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Kikkoman

Taking into account the latest results, Kikkoman's eleven analysts currently expect revenues in 2025 to be JP¥699.8b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be JP¥64.30, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥697.5b and earnings per share (EPS) of JP¥64.13 in 2025. 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¥1,945. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Kikkoman at JP¥2,450 per share, while the most bearish prices it at JP¥1,400. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's pretty clear that there is an expectation that Kikkoman's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.8% growth on an annualised basis. This is compared to a historical growth rate of 10.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kikkoman.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kikkoman's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥1,945, with the latest estimates not enough to have an impact on their price targets.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.