Kawasaki Kisen Kaisha, Ltd. (TSE:9107) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates

Investors in Kawasaki Kisen Kaisha, Ltd. (TSE:9107) had a good week, as its shares rose 2.4% to close at JP¥1,996 following the release of its full-year results. Kawasaki Kisen Kaisha reported in line with analyst predictions, delivering revenues of JP¥1.0t and statutory earnings per share of JP¥460, 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 2 warning signs about Kawasaki Kisen Kaisha. View them for free.

After the latest results, the consensus from Kawasaki Kisen Kaisha's seven analysts is for revenues of JP¥1.01t in 2026, which would reflect a measurable 3.7% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to plunge 58% to JP¥204 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥1.03t and earnings per share (EPS) of JP¥213 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for Kawasaki Kisen Kaisha

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥2,035, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. The most optimistic Kawasaki Kisen Kaisha analyst has a price target of JP¥2,450 per share, while the most pessimistic values it at JP¥1,300. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Kawasaki Kisen Kaisha shareholders.

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. We would highlight that revenue is expected to reverse, with a forecast 3.7% annualised decline to the end of 2026. That is a notable change from historical growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 0.05% annually for the foreseeable future. So it's pretty clear that Kawasaki Kisen Kaisha's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. The consensus also reconfirmed their revenue estimates, suggesting that it is performing in line with expectations. Plus, our data suggests that Kawasaki Kisen Kaisha is expected to perform worse than the wider industry. The consensus price target held steady at JP¥2,035, with the latest estimates not enough to have an impact on their price targets.

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 still need to take note of risks, for example - Kawasaki Kisen Kaisha has 2 warning signs (and 1 which is significant) we think 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.