Yamaha Motor Co., Ltd. Just Beat EPS By 72%: Here's What Analysts Think Will Happen Next
Investors in Yamaha Motor Co., Ltd. (TSE:7272) had a good week, as its shares rose 4.4% to close at JP¥1,799 following the release of its quarterly results. It looks like a credible result overall - although revenues of JP¥717b were what the analysts expected, Yamaha Motor surprised by delivering a (statutory) profit of JP¥61.29 per share, an impressive 72% above what was forecast. 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 current consensus from Yamaha Motor's ten analysts is for revenues of JP¥3.01t in 2027. This would reflect a modest 5.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 30% to JP¥195. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥3.00t and earnings per share (EPS) of JP¥185 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Yamaha Motor
The consensus price target was unchanged at JP¥1,820, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Yamaha Motor, with the most bullish analyst valuing it at JP¥2,100 and the most bearish at JP¥1,250 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 Yamaha Motor shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Yamaha Motor's revenue growth is expected to slow, with the forecast 4.7% annualised growth rate until the end of 2027 being well below the historical 7.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.2% annually. Even after the forecast slowdown in growth, it seems obvious that Yamaha Motor is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Yamaha Motor following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 in mind, we wouldn't be too quick to come to a conclusion on Yamaha 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 Yamaha Motor going out to 2028, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for Yamaha Motor you should know about.
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