Analyst Estimates: Here's What Brokers Think Of The Yokohama Rubber Company, Limited (TSE:5101) After Its First-Quarter Report

It's been a good week for The Yokohama Rubber Company, Limited (TSE:5101) shareholders, because the company has just released its latest first-quarter results, and the shares gained 9.1% to JP¥3,480. Results overall were respectable, with statutory earnings of JP¥468 per share roughly in line with what the analysts had forecast. Revenues of JP¥275b came in 4.5% ahead of analyst predictions. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 2 warning signs about Yokohama Rubber Company. View them for free.

After the latest results, the nine analysts covering Yokohama Rubber Company are now predicting revenues of JP¥1.20t in 2025. If met, this would reflect a modest 7.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 23% to JP¥497. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.19t and earnings per share (EPS) of JP¥499 in 2025. 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.

View our latest analysis for Yokohama Rubber Company

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥4,027. 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. The most optimistic Yokohama Rubber Company analyst has a price target of JP¥5,000 per share, while the most pessimistic values it at JP¥2,480. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. We would highlight that Yokohama Rubber Company's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.9% per year. Even after the forecast slowdown in growth, it seems obvious that Yokohama Rubber Company is also expected to grow faster than 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥4,027, 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 Yokohama Rubber Company. 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 Yokohama Rubber Company going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Yokohama Rubber Company has 2 warning signs (and 1 which is potentially serious) we think you should know about.

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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.