Earnings Miss: Kawasaki Kisen Kaisha, Ltd. Missed EPS By 18% And Analysts Are Revising Their Forecasts

Kawasaki Kisen Kaisha, Ltd. (TSE:9107) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was not a great result overall. While revenues of JP¥245b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 18% to hit JP¥47.40 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the recent earnings report, the consensus from eleven analysts covering Kawasaki Kisen Kaisha is for revenues of JP¥985.7b in 2026. This implies a noticeable 3.9% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to plummet 46% to JP¥224 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥982.5b and earnings per share (EPS) of JP¥211 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Kawasaki Kisen Kaisha

There's been no major changes to the consensus price target of JP¥2,088, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Kawasaki Kisen Kaisha, with the most bullish analyst valuing it at JP¥2,400 and the most bearish at JP¥1,320 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kawasaki Kisen Kaisha's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.1% by the end of 2026. This indicates a significant reduction from annual growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 0.06% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Kawasaki Kisen Kaisha is expected to lag the wider 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 Kawasaki Kisen Kaisha following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Kawasaki Kisen Kaisha going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Kawasaki Kisen Kaisha you should be aware of, and 1 of them can't be ignored.

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.