Bridgestone Corporation Just Missed Earnings - But Analysts Have Updated Their Models

Investors in Bridgestone Corporation (TSE:5108) had a good week, as its shares rose 6.6% to close at JP¥6,612 following the release of its half-yearly results. It looks like the results were a bit of a negative overall. While revenues of JP¥2.1t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.3% to hit JP¥170 per share. 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. 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, Bridgestone's 13 analysts currently expect revenues in 2025 to be JP¥4.35t, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 36% to JP¥411. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥4.36t and earnings per share (EPS) of JP¥415 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Bridgestone

There were no changes to revenue or earnings estimates or the price target of JP¥6,718, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Bridgestone, with the most bullish analyst valuing it at JP¥7,200 and the most bearish at JP¥6,100 per share. This is a very narrow spread of estimates, implying either that Bridgestone is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.0% by the end of 2025. This indicates a significant reduction from annual growth of 9.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.8% per year. It's pretty clear that Bridgestone's revenues are expected to perform substantially worse 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, 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Bridgestone. 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 Bridgestone going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Bridgestone 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.