Mabuchi Motor Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
It's been a good week for Mabuchi Motor Co., Ltd. (TSE:6592) shareholders, because the company has just released its latest interim results, and the shares gained 5.4% to JP¥1,774. Revenues were JP¥106b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥28.22, an impressive 48% 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following last week's earnings report, Mabuchi Motor's ten analysts are forecasting 2026 revenues to be JP¥215.3b, approximately in line with the last 12 months. Statutory earnings per share are forecast to plummet 25% to JP¥93.36 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥211.8b and earnings per share (EPS) of JP¥84.63 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.
See our latest analysis for Mabuchi Motor
The consensus price target was unchanged at JP¥1,657, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Mabuchi Motor, with the most bullish analyst valuing it at JP¥2,000 and the most bearish at JP¥1,150 per share. 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 Mabuchi Motor shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mabuchi Motor's past performance and to peers in the same industry. We would highlight that Mabuchi Motor's revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2026 being well below the historical 9.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Mabuchi Motor.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mabuchi Motor'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 Mabuchi Motor'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 Mabuchi Motor going out to 2028, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for Mabuchi Motor (1 can't be ignored!) that we have uncovered.
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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.