Suzuki Motor Corporation Just Missed Earnings - But Analysts Have Updated Their Models
Last week saw the newest interim earnings release from Suzuki Motor Corporation (TSE:7269), an important milestone in the company's journey to build a stronger business. Revenues were in line with forecasts, at JP¥3.4t, although statutory earnings per share came in 12% below what the analysts expected, at JP¥132 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following last week's earnings report, Suzuki Motor's 18 analysts are forecasting 2027 revenues to be JP¥6.95t, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 9.6% to JP¥234 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥6.92t and earnings per share (EPS) of JP¥235 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Suzuki Motor
There were no changes to revenue or earnings estimates or the price target of JP¥2,554, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Suzuki Motor analyst has a price target of JP¥3,000 per share, while the most pessimistic values it at JP¥1,900. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Suzuki Motor's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this to the 10 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.1% per year. Factoring in the forecast slowdown in growth, it looks like Suzuki Motor is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Suzuki Motor going out to 2029, and you can see them free on our platform here..
We also provide an overview of the Suzuki Motor Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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