Kioxia Holdings' EPS came in 30% below expectations in its latest interim results, weighing on shareholder expectations. Revenue was in line with forecasts, but the market mood deteriorated after the profit outlook for the next fiscal year was sharply reduced.
Following its latest earnings announcement, Kioxia Holdings' net profit came to ¥838, 30% below expectations, while revenue reached ¥4.2 trillion but fell short of analysts' expectations. The share price has fallen 9.6% in the week since the announcement, increasing concern among shareholders.
The consensus forecast from 16 analysts for 2027 calls for revenue of ¥9.97 trillion and EPS of ¥3,350, compared with the previous forecasts of ¥10 trillion in revenue and EPS of ¥4,860. The EPS reduction made the market outlook somewhat more bearish.
The consensus price target is expected to fall 6.2% to ¥34,648. The price-target range is wide, from ¥52,000 to ¥16,333, indicating substantial variation in forecasts. The growth outlook remains strong, but the downward revision to the next fiscal year's profit outlook is affecting investor sentiment.
Compared with the market and its industry peers, the company's revenue growth is expected to be exceptionally high through the end of 2027, at 196%, while the industry as a whole is expected to grow by approximately 18%. Its long-term growth trajectory is still expected to exceed the industry average, but the EPS downgrade is unsettling its valuation.