Kyowa Kirin Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, Kyowa Kirin Co., Ltd. (TSE:4151) just kicked off its latest half-year results with some very strong numbers. The company beat forecasts, with revenue of JP¥233b, some 5.3% above estimates, and statutory earnings per share (EPS) coming in at JP¥70.76, 29% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Kyowa Kirin

Following last week's earnings report, Kyowa Kirin's twelve analysts are forecasting 2024 revenues to be JP¥480.1b, approximately in line with the last 12 months. Statutory earnings per share are expected to tumble 33% to JP¥124 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥479.4b and earnings per share (EPS) of JP¥124 in 2024. 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¥3,246. 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 Kyowa Kirin, with the most bullish analyst valuing it at JP¥3,800 and the most bearish at JP¥2,500 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kyowa Kirin's past performance and to peers in the same industry. We would highlight that Kyowa Kirin's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2024 being well below the historical 8.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kyowa Kirin.

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 Kyowa Kirin's revenue is expected to perform worse than the wider 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Kyowa Kirin going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Kyowa Kirin 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.

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