Kikkoman Corporation (TSE:2801) just released its quarterly report and things are looking bullish. Kikkoman beat earnings, with revenues hitting JP¥202b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 19%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Kikkoman from twelve analysts is for revenues of JP¥811.6b in 2027. If met, it would imply a modest 5.1% increase on its revenue over the past 12 months. Statutory per share are forecast to be JP¥69.75, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥808.2b and earnings per share (EPS) of JP¥68.77 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Kikkoman
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,748. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Kikkoman, with the most bullish analyst valuing it at JP¥2,000 and the most bearish at JP¥1,500 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Kikkoman is an easy business to forecast or the the analysts are all using similar assumptions.
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. It's pretty clear that there is an expectation that Kikkoman's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 6.9% growth on an annualised basis. This is compared to a historical growth rate of 9.5% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.0% annually. So it's pretty clear that, while Kikkoman's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥1,748, 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 estimates - from multiple Kikkoman analysts - going out to 2029, and you can see them free on our platform here.
You can also see our analysis of Kikkoman's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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.