Earnings Miss: KDDI Corporation Missed EPS By 8.1% And Analysts Are Revising Their Forecasts

The quarterly results for KDDI Corporation (TSE:9433) were released last week, making it a good time to revisit its performance. 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 8.1% to hit JP¥43.01 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from KDDI's 13 analysts is for revenues of JP¥6.16t in 2026. This reflects a satisfactory 3.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 13% to JP¥193. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥6.14t and earnings per share (EPS) of JP¥192 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.

Check out our latest analysis for KDDI

The analysts reconfirmed their price target of JP¥2,658, 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¥3,150 per share, while the most bearish prices it at JP¥1,865. 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.

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. The analysts are definitely expecting KDDI's growth to accelerate, with the forecast 4.3% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% annually. KDDI is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥2,658, 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 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for KDDI (1 can't be ignored!) that you need to be mindful 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.