Analysts Are Updating Their Toyo Tire Corporation (TSE:5105) Estimates After Its Third-Quarter Results

Shareholders of Toyo Tire Corporation (TSE:5105) will be pleased this week, given that the stock price is up 11% to JP¥2,392 following its latest quarterly results. Results overall were respectable, with statutory earnings of JP¥85.67 per share roughly in line with what the analysts had forecast. Revenues of JP¥147b came in 3.7% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Toyo Tire after the latest results.

Check out our latest analysis for Toyo Tire

Taking into account the latest results, the most recent consensus for Toyo Tire from twelve analysts is for revenues of JP¥581.6b in 2025. If met, it would imply a reasonable 3.1% increase on its revenue over the past 12 months. Statutory earnings per share are expected to drop 15% to JP¥390 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥582.4b and earnings per share (EPS) of JP¥389 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.

The analysts reconfirmed their price target of JP¥2,513, showing that the business is executing well and in line with expectations. 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 Toyo Tire analyst has a price target of JP¥3,100 per share, while the most pessimistic values it at JP¥2,100. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Toyo Tire's past performance and to peers in the same industry. We would highlight that Toyo Tire's revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2025 being well below the historical 11% 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 3.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Toyo Tire is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Toyo Tire's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥2,513, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for Toyo Tire going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Toyo Tire (including 1 which makes us a bit uncomfortable) .

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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.