Toyo Tire Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Toyo Tire Corporation (TSE:5105) had a good week, as its shares rose 4.9% to close at JP¥2,813 following the release of its quarterly results. Revenues of JP¥136b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥87.71, missing estimates by 5.8%. 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. 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.

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Taking into account the latest results, Toyo Tire's eleven analysts currently expect revenues in 2025 to be JP¥583.8b, approximately in line with the last 12 months. Statutory earnings per share are expected to sink 13% to JP¥368 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥583.1b and earnings per share (EPS) of JP¥368 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.

See our latest analysis for Toyo Tire

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,895. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Toyo Tire, with the most bullish analyst valuing it at JP¥4,000 and the most bearish at JP¥2,300 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 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 12% p.a. growth over the last five years. Compare this to the 106 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.9% per year. So it's pretty clear that, while Toyo Tire's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥2,895, 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 Toyo Tire. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Toyo Tire analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Toyo Tire , and understanding this should be part of your investment process.

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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.