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

The annual results for Bridgestone Corporation (TSE:5108) were released last week, making it a good time to revisit its performance. Revenues were in line with forecasts, at JP¥4.4t, although statutory earnings per share came in 16% below what the analysts expected, at JP¥416 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, Bridgestone's 13 analysts currently expect revenues in 2025 to be JP¥4.51t, approximately in line with the last 12 months. Per-share earnings are expected to step up 18% to JP¥493. In the lead-up to this report, the analysts had been modelling revenues of JP¥4.52t and earnings per share (EPS) of JP¥501 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 Bridgestone

The analysts reconfirmed their price target of JP¥6,368, 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. Currently, the most bullish analyst values Bridgestone at JP¥7,000 per share, while the most bearish prices it at JP¥5,700. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Bridgestone is an easy business to forecast or the the analysts are all using similar assumptions.

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 Bridgestone's revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2025 being well below the historical 8.5% 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 Bridgestone is also expected to grow slower than other industry participants.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bridgestone's revenue is expected to perform worse 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.

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 Bridgestone going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Bridgestone that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.