Yamaha Corporation (TSE:7951) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
It's been a good week for Yamaha Corporation (TSE:7951) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.8% to JP¥1,343. Results overall were respectable, with statutory earnings of JP¥52.70 per share roughly in line with what the analysts had forecast. Revenues of JP¥116b came in 3.5% ahead of analyst predictions. 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. 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, Yamaha's seven analysts currently expect revenues in 2027 to be JP¥483.9b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be JP¥72.49, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥482.6b and earnings per share (EPS) of JP¥67.62 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Yamaha
The consensus price target was unchanged at JP¥1,169, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Yamaha, with the most bullish analyst valuing it at JP¥1,400 and the most bearish at JP¥1,000 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. We would highlight that Yamaha's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2027 being well below the historical 3.0% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Yamaha.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Yamaha's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Yamaha'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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Yamaha going out to 2029, and you can see them free on our platform here..
We also provide an overview of the Yamaha Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.