Bridgestone Corporation Just Recorded A 9.0% EPS Beat: Here's What Analysts Are Forecasting Next

Bridgestone Corporation (TSE:5108) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Bridgestone reported JP¥1.1t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥111 beat expectations, being 9.0% higher than what the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Bridgestone's 13 analysts currently expect revenues in 2025 to be JP¥4.45t, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 5.9% to JP¥428. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥4.46t and earnings per share (EPS) of JP¥433 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.

View our latest analysis for Bridgestone

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥6,382. 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. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bridgestone's past performance and to peers in the same industry. We would highlight that Bridgestone's revenue growth is expected to slow, with the forecast 0.6% annualised growth rate until the end of 2025 being well below the historical 9.0% 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 2.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Bridgestone.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥6,382, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Bridgestone going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Bridgestone has 1 warning sign we think you should be aware of.

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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.