Kewpie Corporation Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next

Last week, you might have seen that Kewpie Corporation (TSE:2809) released its third-quarter result to the market. The early response was not positive, with shares down 4.6% to JP¥3,456 in the past week. It looks like a credible result overall - although revenues of JP¥124b were in line with what the analysts predicted, Kewpie surprised by delivering a statutory profit of JP¥52.11 per share, a notable 13% above expectations. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Kewpie

Following the latest results, Kewpie's five analysts are now forecasting revenues of JP¥501.8b in 2025. This would be a credible 4.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.1% to JP¥170. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥502.2b and earnings per share (EPS) of JP¥172 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥4,220. 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. The most optimistic Kewpie analyst has a price target of JP¥4,500 per share, while the most pessimistic values it at JP¥3,600. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. One thing stands out from these estimates, which is that Kewpie is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.6% annualised growth until the end of 2025. If achieved, this would be a much better result than the 4.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.7% per year. So while Kewpie's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall 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 Kewpie going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Kewpie 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.