Keikyu Corporation (TSE:9006) Interim Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for Keikyu Corporation (TSE:9006) shareholders, because the company has just released its latest half-yearly results, and the shares gained 4.5% to JP¥1,538. Keikyu reported in line with analyst predictions, delivering revenues of JP¥143b and statutory earnings per share of JP¥88.40, 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, Keikyu's four analysts are forecasting 2026 revenues to be JP¥299.1b, approximately in line with the last 12 months. Statutory earnings per share are predicted to step up 17% to JP¥114. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥306.9b and earnings per share (EPS) of JP¥94.38 in 2026. Although the analysts have lowered their revenue forecasts, they've also made a sizeable expansion in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

Check out our latest analysis for Keikyu

There's been no real change to the average price target of JP¥1,575, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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. There are some variant perceptions on Keikyu, with the most bullish analyst valuing it at JP¥1,650 and the most bearish at JP¥1,500 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Keikyu's revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2026 being well below the historical 4.5% p.a. growth over the last five years. Compare this to the 47 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.1% per year. So it's pretty clear that, while Keikyu's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Keikyu following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Even so, earnings are more important to the intrinsic value of the business. 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 forecasts for Keikyu going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Keikyu (of which 1 is a bit concerning!) 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.