Mitsubishi Heavy Industries, Ltd. Just Recorded A 67% EPS Beat: Here's What Analysts Are Forecasting Next
As you might know, Mitsubishi Heavy Industries, Ltd. (TSE:7011) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of JP¥1.2t, some 3.6% above estimates, and statutory earnings per share (EPS) coming in at JP¥40.08, 67% 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. 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 Mitsubishi Heavy Industries' 16 analysts is for revenues of JP¥5.57t in 2027. This would reflect a meaningful 8.5% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 4.1% to JP¥127. Before this earnings report, the analysts had been forecasting revenues of JP¥5.56t and earnings per share (EPS) of JP¥124 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 Mitsubishi Heavy Industries
There were no changes to revenue or earnings estimates or the price target of JP¥5,335, 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 Mitsubishi Heavy Industries, with the most bullish analyst valuing it at JP¥6,200 and the most bearish at JP¥3,000 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Mitsubishi Heavy Industries' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 7.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Mitsubishi Heavy Industries 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥5,335, 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. At Simply Wall St, we have a full range of analyst estimates for Mitsubishi Heavy Industries going out to 2029, and you can see them free on our platform here..
We also provide an overview of the Mitsubishi Heavy Industries 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.