Kyocera Corporation Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

Last week saw the newest third-quarter earnings release from Kyocera Corporation (TSE:6971), an important milestone in the company's journey to build a stronger business. Revenues fell 3.2% short of expectations, at JP¥493b. Earnings correspondingly dipped, with Kyocera reporting a statutory loss of JP¥12.60 per share, whereas the analysts had previously modelled a profit in this period. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kyocera after the latest results.

See our latest analysis for Kyocera

Taking into account the latest results, the consensus forecast from Kyocera's 15 analysts is for revenues of JP¥2.09t in 2026. This reflects a credible 4.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 265% to JP¥75.33. Before this earnings report, the analysts had been forecasting revenues of JP¥2.09t and earnings per share (EPS) of JP¥75.44 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of JP¥1,839, showing that the business is executing well and in line with expectations. 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 Kyocera at JP¥2,420 per share, while the most bearish prices it at JP¥1,440. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. It's pretty clear that there is an expectation that Kyocera's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 6.7% 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 7.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Kyocera is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kyocera's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥1,839, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Kyocera. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kyocera analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Kyocera 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.