Kokusai Electric Corporation Just Beat EPS By 91%: Here's What Analysts Think Will Happen Next

Kokusai Electric Corporation (TSE:6525) just released its first-quarter report and things are looking bullish. Statutory revenue of JP¥65b and earnings of JP¥56.76 both blasted past expectations, beating expectations by 25% and 91%, respectively, 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Kokusai Electric

Following the latest results, Kokusai Electric's nine analysts are now forecasting revenues of JP¥225.1b in 2025. This would be a credible 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 2.6% to JP¥144. In the lead-up to this report, the analysts had been modelling revenues of JP¥222.4b and earnings per share (EPS) of JP¥140 in 2025. So the consensus seems to have become somewhat more optimistic on Kokusai Electric's earnings potential following these results.

The consensus price target fell 5.4% to JP¥5,158, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. 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¥6,150 per share, while the most bearish prices it at JP¥2,900. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. For example, we noticed that Kokusai Electric's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.4% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 6.4% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 12% per year. Although Kokusai Electric's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Kokusai Electric following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Kokusai Electric going out to 2027, and you can see them free on our platform here.

Even so, be aware that Kokusai Electric is showing 1 warning sign in our investment analysis , 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.