It's been a sad week for Kyocera Corporation (TSE:6971), who've watched their investment drop 15% to JP¥3,027 in the week since the company reported its half-year result. Results overall were not great, with earnings of JP¥10.53 per share falling drastically short of analyst expectations. Meanwhile revenues hit JP¥1.1t and were slightly better than forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus, from the 15 analysts covering Kyocera, is for revenues of JP¥2.11t in 2027. This implies a small 2.2% reduction in Kyocera's revenue over the past 12 months. Per-share earnings are expected to rise 3.5% to JP¥130. In the lead-up to this report, the analysts had been modelling revenues of JP¥2.12t and earnings per share (EPS) of JP¥131 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Kyocera
There were no changes to revenue or earnings estimates or the price target of JP¥3,625, suggesting that the company has met expectations in its recent result. 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 Kyocera, with the most bullish analyst valuing it at JP¥5,100 and the most bearish at JP¥1,500 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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 4.4% annualised decline to the end of 2027. That is a notable change from historical growth of 2.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 10% per year. It's pretty clear that Kyocera's revenues are expected to perform substantially worse than the wider industry.
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. 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. 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. At Simply Wall St, we have a full range of analyst estimates for Kyocera going out to 2029, and you can see them free on our platform here..
You can also see our analysis of Kyocera's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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