Here's What Analysts Are Forecasting For Konica Minolta, Inc. (TSE:4902) After Its Half-Year Results

It's been a good week for Konica Minolta, Inc. (TSE:4902) shareholders, because the company has just released its latest half-yearly results, and the shares gained 9.6% to JP¥706. The results don't look great, especially considering that statutory losses grew 2,307% toJP¥21.66 per share. Revenues of JP¥584b did beat expectations by 2.2%, but it looks like a bit of a cold comfort. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Konica Minolta

Taking into account the latest results, the nine analysts covering Konica Minolta provided consensus estimates of JP¥1.14t revenue in 2025, which would reflect a perceptible 3.9% decline over the past 12 months. Losses are predicted to fall substantially, shrinking 56% to JP¥1.53. Before this earnings announcement, the analysts had been modelling revenues of JP¥1.17t and losses of JP¥3.16 per share in 2025. While the revenue estimates fell, sentiment seems to have improved, with the analysts making a considerable decrease in losses per share in particular.

The consensus price target was broadly unchanged at JP¥527, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Konica Minolta at JP¥835 per share, while the most bearish prices it at JP¥300. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.6% by the end of 2025. This indicates a significant reduction from annual growth of 5.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Konica Minolta is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, long term profitability is more important for the value creation process. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Konica Minolta analysts - 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 Konica Minolta (including 1 which doesn't sit too well with us) .

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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.