Suzuki Motor Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Suzuki Motor Corporation (TSE:7269) just released its first-quarter report and things are looking bullish. The company beat forecasts, with revenue of JP¥1.7t, some 6.9% above estimates, and statutory earnings per share (EPS) coming in at JP¥95.17, 48% ahead of expectations. 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.
Taking into account the latest results, the most recent consensus for Suzuki Motor from 17 analysts is for revenues of JP¥6.83t in 2027. If met, it would imply a satisfactory 3.5% increase on its revenue over the past 12 months. Statutory earnings per share are expected to sink 19% to JP¥219 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥6.78t and earnings per share (EPS) of JP¥216 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 Suzuki Motor
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,550. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Suzuki Motor analyst has a price target of JP¥3,300 per share, while the most pessimistic values it at JP¥1,800. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Suzuki Motor shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Suzuki Motor's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.2% per year. So it's pretty clear that, while Suzuki Motor'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. 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. 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. We have forecasts for Suzuki Motor going out to 2029, and you can see them free on our platform here.
We also provide an overview of the Suzuki Motor Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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.