Analysts Have Made A Financial Statement On Kokusai Electric Corporation's (TSE:6525) Third-Quarter Report

It's been a good week for Kokusai Electric Corporation (TSE:6525) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.6% to JP¥2,637. Kokusai Electric beat revenue expectations by 4.3%, at JP¥60b. Statutory earnings per share (EPS) came in at JP¥34.65, some 3.6% short of analyst estimates. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Kokusai Electric

Following the latest results, Kokusai Electric's nine analysts are now forecasting revenues of JP¥242.9b in 2026. This would be a solid 8.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 15% to JP¥157. Before this earnings report, the analysts had been forecasting revenues of JP¥242.0b and earnings per share (EPS) of JP¥157 in 2026. 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.

The analysts reconfirmed their price target of JP¥3,249, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Kokusai Electric at JP¥3,900 per share, while the most bearish prices it at JP¥2,200. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Kokusai Electric is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.7% annualised growth until the end of 2026. If achieved, this would be a much better result than the 6.3% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.4% annually for the foreseeable future. So although Kokusai Electric's revenue growth is expected to improve, it is still expected to grow slower than the 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 Kokusai Electric's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥3,249, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Kokusai Electric. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Kokusai Electric going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Kokusai Electric that you need to take into consideration.

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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.