The Kyoei Steel Ltd. (TSE:5440) Half-Year Results Are Out And Analysts Have Published New Forecasts

Kyoei Steel Ltd. (TSE:5440) came out with its half-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues came in 3.0% below expectations, at JP¥161b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥318 being roughly in line with analyst estimates. 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 Kyoei Steel after the latest results.

See our latest analysis for Kyoei Steel

Taking into account the latest results, Kyoei Steel's four analysts currently expect revenues in 2025 to be JP¥322.3b, approximately in line with the last 12 months. Statutory earnings per share are predicted to step up 18% to JP¥299. In the lead-up to this report, the analysts had been modelling revenues of JP¥318.5b and earnings per share (EPS) of JP¥298 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¥2,077. 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. There are some variant perceptions on Kyoei Steel, with the most bullish analyst valuing it at JP¥2,200 and the most bearish at JP¥1,830 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kyoei Steel's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 2.5% annualised decline to the end of 2025. That is a notable change from historical growth of 9.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.0% annually for the foreseeable future. It's pretty clear that Kyoei Steel's revenues are expected to perform substantially worse than 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kyoei Steel's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥2,077, 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 estimates - from multiple Kyoei Steel analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Kyoei Steel .

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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.