Kokusai Electric Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a sad week for Kokusai Electric Corporation (TSE:6525), who've watched their investment drop 15% to JP¥2,507 in the week since the company reported its half-yearly result. Revenues were in line with forecasts, at JP¥115b, although statutory earnings per share came in 12% below what the analysts expected, at JP¥77.06 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Kokusai Electric

Taking into account the latest results, the consensus forecast from Kokusai Electric's ten analysts is for revenues of JP¥238.2b in 2025. This reflects a notable 9.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 11% to JP¥148. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥227.6b and earnings per share (EPS) of JP¥146 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of JP¥4,209, implying that the uplift in revenue is not expected to greatly contribute to Kokusai Electric's valuation in the near term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Kokusai Electric analyst has a price target of JP¥5,370 per share, while the most pessimistic values it at JP¥2,600. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Kokusai Electric's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.8% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Kokusai Electric is expected to grow much faster than its 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at JP¥4,209, 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 Kokusai Electric going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Kokusai Electric (including 1 which is a bit concerning) .

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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.