Isuzu Motors Limited Just Missed EPS By 35%: Here's What Analysts Think Will Happen Next

Isuzu Motors Limited (TSE:7202) missed earnings with its latest half-year results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with JP¥1.5t revenue coming in 3.8% lower than what the analystsexpected. Statutory earnings per share (EPS) of JP¥92.53 missed the mark badly, arriving some 35% below what was expected. 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.

See our latest analysis for Isuzu Motors

Following last week's earnings report, Isuzu Motors' twelve analysts are forecasting 2025 revenues to be JP¥3.27t, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 2.4% to JP¥210 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥3.29t and earnings per share (EPS) of JP¥223 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥2,236, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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¥3,000 and the most bearish at JP¥1,600 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 0.9% by the end of 2025. This indicates a significant reduction from annual growth of 14% 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 Isuzu Motors' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Isuzu Motors. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Isuzu Motors' revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥2,236, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Isuzu Motors analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Isuzu Motors' debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.