Analysts Are Updating Their KDDI Corporation (TSE:9433) Estimates After Its Third-Quarter Results

Shareholders might have noticed that KDDI Corporation (TSE:9433) filed its quarterly result this time last week. The early response was not positive, with shares down 6.0% to JP¥4,874 in the past week. Results were roughly in line with estimates, with revenues of JP¥1.5t and statutory earnings per share of JP¥92.31. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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

Taking into account the latest results, the consensus forecast from KDDI's eleven analysts is for revenues of JP¥5.99t in 2026. This reflects a modest 2.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 22% to JP¥383. Before this earnings report, the analysts had been forecasting revenues of JP¥6.00t and earnings per share (EPS) of JP¥377 in 2026. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥5,209, suggesting that the company has met expectations in its recent result. 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. The most optimistic KDDI analyst has a price target of JP¥6,600 per share, while the most pessimistic values it at JP¥3,730. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the KDDI's past performance and to peers in the same industry. We would highlight that KDDI's revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2026 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 3.6% 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 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 KDDI's revenue is expected to 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple KDDI analysts - 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 2 warning signs for KDDI that you should be aware of.

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

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.