Analyst Estimates: Here's What Brokers Think Of KDDI Corporation (TSE:9433) After Its First-Quarter Report

Shareholders might have noticed that KDDI Corporation (TSE:9433) filed its first-quarter result this time last week. The early response was not positive, with shares down 3.3% to JP¥4,359 in the past week. It looks like the results were a bit of a negative overall. While revenues of JP¥1.4t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.1% to hit JP¥84.98 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on KDDI after the latest results.

Check out our latest analysis for KDDI

Following last week's earnings report, KDDI's 17 analysts are forecasting 2025 revenues to be JP¥5.89t, approximately in line with the last 12 months. Per-share earnings are expected to ascend 12% to JP¥344. In the lead-up to this report, the analysts had been modelling revenues of JP¥5.88t and earnings per share (EPS) of JP¥345 in 2025. 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¥4,889, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values KDDI at JP¥6,600 per share, while the most bearish prices it at JP¥3,730. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. We would highlight that KDDI's revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2025 being well below the historical 2.6% 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 3.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that KDDI is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple KDDI analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for KDDI 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.

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