It's been a good week for Keikyu Corporation (TSE:9006) shareholders, because the company has just released its latest interim results, and the shares gained 4.3% to JP¥1,630. Results were roughly in line with estimates, with revenues of JP¥149b and statutory earnings per share of JP¥102. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Keikyu's four analysts are now forecasting revenues of JP¥382.0b in 2027. This would be a sizeable 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 19% to JP¥117. Before this earnings report, the analysts had been forecasting revenues of JP¥387.3b and earnings per share (EPS) of JP¥115 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.
Check out our latest analysis for Keikyu
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,540. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Keikyu analyst has a price target of JP¥1,610 per share, while the most pessimistic values it at JP¥1,500. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Keikyu's growth to accelerate, with the forecast 51% annualised growth to the end of 2027 ranking favourably alongside historical growth of 4.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Keikyu to grow faster 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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥1,540, 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 Keikyu going out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Keikyu (1 is significant!) that we have uncovered.
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