Earnings Miss: Isuzu Motors Limited Missed EPS By 29% And Analysts Are Revising Their Forecasts

It's been a good week for Isuzu Motors Limited (TSE:7202) shareholders, because the company has just released its latest first-quarter results, and the shares gained 6.6% to JP¥2,022. Statutory earnings per share fell badly short of expectations, coming in at JP¥62.66, some 29% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at JP¥748b. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Isuzu Motors

Following last week's earnings report, Isuzu Motors' twelve analysts are forecasting 2025 revenues to be JP¥3.37t, approximately in line with the last 12 months. Statutory earnings per share are forecast to decrease 3.4% to JP¥230 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥3.39t and earnings per share (EPS) of JP¥233 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.

There were no changes to revenue or earnings estimates or the price target of JP¥2,253, suggesting that the company has met expectations in its recent result. 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 Isuzu Motors, with the most bullish analyst valuing it at JP¥2,700 and the most bearish at JP¥1,850 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that Isuzu Motors' revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2025 being well below the historical 13% 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 3.2% 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 Isuzu Motors.

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¥2,253, 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 Isuzu Motors going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Isuzu Motors' balance sheet, and whether we think Isuzu Motors is carrying too much debt, for free on our platform here.

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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.