The KDDI Corporation (TSE:9433) Full-Year Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that KDDI Corporation (TSE:9433) filed its full-year result this time last week. The early response was not positive, with shares down 2.6% to JP¥2,595 in the past week. Revenues of JP¥5.9t were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥169, missing estimates by 3.1%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 most recent consensus for KDDI from 13 analysts is for revenues of JP¥6.05t in 2026. If met, it would imply a satisfactory 2.3% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 13% to JP¥194. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥5.99t and earnings per share (EPS) of JP¥191 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.

View our latest analysis for KDDI

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,583. 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 KDDI, with the most bullish analyst valuing it at JP¥3,150 and the most bearish at JP¥1,865 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 can infer from the latest estimates that forecasts expect a continuation of KDDI'shistorical trends, as the 2.3% annualised revenue growth to the end of 2026 is roughly in line with the 2.6% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 3.3% annually. So although KDDI is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

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. 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 forecasts for KDDI going out to 2028, 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.

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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.