Kyocera Corporation Just Missed Earnings - But Analysts Have Updated Their Models

There's been a notable change in appetite for Kyocera Corporation (TSE:6971) shares in the week since its half-yearly report, with the stock down 12% to JP¥1,506. It looks like a pretty bad result, all things considered. Although revenues of JP¥999b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 29% to hit JP¥25.61 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Kyocera

Taking into account the latest results, Kyocera's 13 analysts currently expect revenues in 2025 to be JP¥2.04t, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 29% to JP¥73.59. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.06t and earnings per share (EPS) of JP¥81.99 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The consensus price target held steady at JP¥1,978, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Kyocera, with the most bullish analyst valuing it at JP¥2,420 and the most bearish at JP¥1,600 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Kyocera's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 6.8% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kyocera.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kyocera. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Kyocera going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Kyocera that we have uncovered.

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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.