The Yokohama Rubber Company, Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
A week ago, The Yokohama Rubber Company, Limited (TSE:5101) came out with a strong set of half-yearly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of JP¥639b, some 3.1% above estimates, and statutory earnings per share (EPS) coming in at JP¥368, 41% ahead of expectations. 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 Yokohama Rubber Company from eleven analysts is for revenues of JP¥1.32t in 2026. If met, it would imply a modest 2.1% increase on its revenue over the past 12 months. Statutory earnings per share are expected to descend 12% to JP¥795 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.32t and earnings per share (EPS) of JP¥769 in 2026. So the consensus seems to have become somewhat more optimistic on Yokohama Rubber Company's earnings potential following these results.
See our latest analysis for Yokohama Rubber Company
There's been no major changes to the consensus price target of JP¥8,235, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Yokohama Rubber Company analyst has a price target of JP¥9,500 per share, while the most pessimistic values it at JP¥6,200. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Yokohama Rubber Company's past performance and to peers in the same industry. We would highlight that Yokohama Rubber Company's revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2026 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.1% annually. So it's pretty clear that, while Yokohama Rubber Company's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Yokohama Rubber Company's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Yokohama Rubber Company going out to 2028, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for Yokohama Rubber Company (1 is a bit unpleasant!) that you should be aware of.
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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.