Analysts Are Updating Their KDDI Corporation (TSE:9433) Estimates After Its Interim Results

Last week saw the newest interim earnings release from KDDI Corporation (TSE:9433), an important milestone in the company's journey to build a stronger business. KDDI reported in line with analyst predictions, delivering revenues of JP¥2.9t and statutory earnings per share of JP¥86.23, suggesting the business is executing well and in line with its plan. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for KDDI

Following last week's earnings report, KDDI's 13 analysts are forecasting 2025 revenues to be JP¥5.85t, approximately in line with the last 12 months. Statutory earnings per share are predicted to ascend 13% to JP¥346. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥5.85t and earnings per share (EPS) of JP¥344 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¥4,970, showing that the business is executing well and in line with expectations. 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. It's pretty clear that there is an expectation that KDDI's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.7% growth on an annualised basis. This is compared to a historical growth rate of 2.6% 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 3.4% annually. 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. 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¥4,970, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for KDDI 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 1 warning sign for KDDI 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.