GS Yuasa Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
GS Yuasa Corporation (TSE:6674) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to JP¥5,226 in the week after its latest quarterly results. Revenues of JP¥142b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of JP¥75.34 an impressive 27% ahead of estimates. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for GS Yuasa from ten analysts is for revenues of JP¥650.1b in 2027. If met, it would imply a reasonable 5.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 2.1% to JP¥436. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥649.5b and earnings per share (EPS) of JP¥410 in 2027. So the consensus seems to have become somewhat more optimistic on GS Yuasa's earnings potential following these results.
View our latest analysis for GS Yuasa
There's been no major changes to the consensus price target of JP¥7,233, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on GS Yuasa, with the most bullish analyst valuing it at JP¥8,200 and the most bearish at JP¥5,300 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.
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. We can infer from the latest estimates that forecasts expect a continuation of GS Yuasa'shistorical trends, as the 6.8% annualised revenue growth to the end of 2027 is roughly in line with the 8.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.2% annually. So although GS Yuasa is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards GS Yuasa following these results. 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¥7,233, 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 GS Yuasa going out to 2029, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for GS Yuasa you should know about.
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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.