Bridgestone Corporation Just Recorded A 11% EPS Beat: Here's What Analysts Are Forecasting Next
A week ago, Bridgestone Corporation (TSE:5108) came out with a strong set of half-year numbers that could potentially lead to a re-rate of the stock. Bridgestone beat earnings, with revenues hitting JP¥2.3t, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 11%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following last week's earnings report, Bridgestone's 13 analysts are forecasting 2026 revenues to be JP¥4.68t, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 14% to JP¥283 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥4.63t and earnings per share (EPS) of JP¥279 in 2026. 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 Bridgestone
The analysts reconfirmed their price target of JP¥3,749, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Bridgestone at JP¥4,300 per share, while the most bearish prices it at JP¥3,400. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 would highlight that Bridgestone's revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2026 being well below the historical 6.5% 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 4.1% 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 Bridgestone.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥3,749, 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. We have estimates - from multiple Bridgestone analysts - going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - Bridgestone has 1 warning sign we think 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.