Analysts Are Updating Their Mabuchi Motor Co., Ltd. (TSE:6592) Estimates After Its Third-Quarter Results
Mabuchi Motor Co., Ltd. (TSE:6592) just released its latest quarterly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.2% to hit JP¥62b. Statutory earnings per share (EPS) came in at JP¥24.69, some 4.4% above whatthe analysts had expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Mabuchi Motor's ten analysts is for revenues of JP¥236.7b in 2027. This reflects a credible 6.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to fall 12% to JP¥99.04 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥235.9b and earnings per share (EPS) of JP¥97.54 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.
Check out our latest analysis for Mabuchi Motor
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,741. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. 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¥1,450 per share. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Mabuchi Motor's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 5.5% growth on an annualised basis. This is compared to a historical growth rate of 9.8% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.7% 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 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, 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. The consensus price target held steady at JP¥1,741, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Mabuchi Motor. Long-term earnings power is much more important than next year's profits. 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..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Mabuchi Motor , and understanding it should be part of your investment process.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.