Kyocera Corporation (TSE:6971) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 8.5% to hit JP¥525b. Kyocera also reported a statutory profit of JP¥46.20, which was an impressive 75% above what the analysts had forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the recent earnings report, the consensus from 15 analysts covering Kyocera is for revenues of JP¥2.05t in 2027. This implies a perceptible 3.0% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 9.3% to JP¥115 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.02t and earnings per share (EPS) of JP¥107 in 2027. So the consensus seems to have become somewhat more optimistic on Kyocera's earnings potential following these results.
See our latest analysis for Kyocera
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.5% to JP¥3,432. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Kyocera analyst has a price target of JP¥4,700 per share, while the most pessimistic values it at JP¥1,500. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 4.0% annualised decline to the end of 2027. That is a notable change from historical growth of 3.2% 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 9.3% annually for the foreseeable future. It's pretty clear that Kyocera's revenues are expected to perform substantially worse than 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 Kyocera following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kyocera's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Kyocera. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kyocera analysts - going out to 2029, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.