The Isuzu Motors Limited (TSE:7202) Full-Year Results Are Out And Analysts Have Published New Forecasts

Last week, you might have seen that Isuzu Motors Limited (TSE:7202) released its yearly result to the market. The early response was not positive, with shares down 3.4% to JP¥1,895 in the past week. Revenues of JP¥3.2t were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥183, missing estimates by 4.1%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 1 warning sign about Isuzu Motors. View them for free.

Taking into account the latest results, the most recent consensus for Isuzu Motors from twelve analysts is for revenues of JP¥3.37t in 2026. If met, it would imply an okay 5.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 19% to JP¥224. In the lead-up to this report, the analysts had been modelling revenues of JP¥3.42t and earnings per share (EPS) of JP¥230 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Isuzu Motors

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥2,238, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Isuzu Motors at JP¥2,650 per share, while the most bearish prices it at JP¥1,600. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Isuzu Motors shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Isuzu Motors' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.1% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.7% annually. Even after the forecast slowdown in growth, it seems obvious that Isuzu Motors is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥2,238, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Isuzu Motors going out to 2028, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Isuzu Motors .

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.