Asahi Kasei Corporation (TSE:3407) Just Released Its Interim Earnings: Here's What Analysts Think

Investors in Asahi Kasei Corporation (TSE:3407) had a good week, as its shares rose 8.1% to close at JP¥1,127 following the release of its half-yearly results. It looks like the results were a bit of a negative overall. While revenues of JP¥1.5t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.1% to hit JP¥18.87 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Asahi Kasei after the latest results.

View our latest analysis for Asahi Kasei

Taking into account the latest results, the current consensus from Asahi Kasei's eleven analysts is for revenues of JP¥3.01t in 2025. This would reflect a satisfactory 2.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 60% to JP¥84.26. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥3.00t and earnings per share (EPS) of JP¥83.32 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.

There were no changes to revenue or earnings estimates or the price target of JP¥1,303, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Asahi Kasei analyst has a price target of JP¥1,600 per share, while the most pessimistic values it at JP¥1,110. 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 would highlight that Asahi Kasei's revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2025 being well below the historical 7.3% p.a. growth over the last five years. Compare this to the 159 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.2% per year. Factoring in the forecast slowdown in growth, it looks like Asahi Kasei is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥1,303, 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. At Simply Wall St, we have a full range of analyst estimates for Asahi Kasei going out to 2027, 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 Asahi Kasei 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.