Earnings Beat: Bridgestone Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Investors in Bridgestone Corporation (TSE:5108) had a good week, as its shares rose 6.6% to close at JP¥7,314 following the release of its quarterly results. Revenues were JP¥1.1t, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥133, an impressive 21% ahead of estimates. 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. 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.

Following the latest results, Bridgestone's twelve analysts are now forecasting revenues of JP¥4.55t in 2026. This would be an okay 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 70% to JP¥623. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥4.51t and earnings per share (EPS) of JP¥627 in 2026. 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

The analysts reconfirmed their price target of JP¥7,414, 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 Bridgestone analyst has a price target of JP¥8,000 per share, while the most pessimistic values it at JP¥6,700. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Bridgestone's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.8% growth on an annualised basis. This is compared to a historical growth rate of 8.8% over the past 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. Factoring in the forecast slowdown in growth, it looks like Bridgestone is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

However, before you get too enthused, we've discovered 1 warning sign for Bridgestone that you should be aware of.

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.