Results: Kyocera Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

Last week, you might have seen that Kyocera Corporation (TSE:6971) released its first-quarter result to the market. The early response was not positive, with shares down 7.1% to JP¥1,720 in the past week. It looks like a credible result overall - although revenues of JP¥499b were what the analysts expected, Kyocera surprised by delivering a (statutory) profit of JP¥26.12 per share, an impressive 36% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Kyocera

After the latest results, the 13 analysts covering Kyocera are now predicting revenues of JP¥2.07t in 2025. If met, this would reflect a reasonable 2.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 19% to JP¥85.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.06t and earnings per share (EPS) of JP¥84.88 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,080. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Kyocera, with the most bullish analyst valuing it at JP¥2,500 and the most bearish at JP¥1,800 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.

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. We would highlight that Kyocera's revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2025 being well below the historical 6.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.2% per year. 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥2,080, 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.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Kyocera 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com