Kohoku Kogyo CO.,LTD. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Explore Kohoku KogyoLTD's Fair Values from the Community and select yours

It's been a good week for Kohoku Kogyo CO.,LTD. (TSE:6524) shareholders, because the company has just released its latest half-year results, and the shares gained 5.8% to JP¥2,820. Statutory earnings per share fell badly short of expectations, coming in at JP¥14.47, some 46% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at JP¥7.9b. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Kohoku KogyoLTD's four analysts are now forecasting revenues of JP¥17.4b in 2025. This would be a notable 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 21% to JP¥96.72. Before this earnings report, the analysts had been forecasting revenues of JP¥17.5b and earnings per share (EPS) of JP¥111 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

Check out our latest analysis for Kohoku KogyoLTD

The consensus price target held steady at JP¥3,433, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Kohoku KogyoLTD analyst has a price target of JP¥3,500 per share, while the most pessimistic values it at JP¥3,300. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The analysts are definitely expecting Kohoku KogyoLTD's growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.3% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Kohoku KogyoLTD to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kohoku KogyoLTD. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 in mind, we wouldn't be too quick to come to a conclusion on Kohoku KogyoLTD. 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 Kohoku KogyoLTD going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Kohoku KogyoLTD that you should be aware of.

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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.