Toyota Boshoku Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Toyota Boshoku Corporation (TSE:3116) had a good week, as its shares rose 2.1% to close at JP¥2,214 following the release of its quarterly results. Revenues were JP¥480b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥60.48 were also better than expected, beating analyst predictions by 15%. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, Toyota Boshoku's seven analysts currently expect revenues in 2026 to be JP¥1.98t, approximately in line with the last 12 months. Per-share earnings are expected to surge 165% to JP¥280. Before this earnings report, the analysts had been forecasting revenues of JP¥1.96t and earnings per share (EPS) of JP¥258 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Toyota Boshoku

There's been no major changes to the consensus price target of JP¥2,180, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Toyota Boshoku, with the most bullish analyst valuing it at JP¥2,500 and the most bearish at JP¥1,910 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Toyota Boshoku is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's pretty clear that there is an expectation that Toyota Boshoku's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.6% annually. So it's pretty clear that, while Toyota Boshoku's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 Toyota Boshoku following these results. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Toyota Boshoku 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 Toyota Boshoku 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.