Mitsubishi Motors Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders might have noticed that Mitsubishi Motors Corporation (TSE:7211) filed its quarterly result this time last week. The early response was not positive, with shares down 9.5% to JP¥425 in the past week. The result was positive overall - although revenues of JP¥628b were in line with what the analysts predicted, Mitsubishi Motors surprised by delivering a statutory profit of JP¥19.82 per share, modestly greater than expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Mitsubishi Motors

After the latest results, the twelve analysts covering Mitsubishi Motors are now predicting revenues of JP¥2.84t in 2025. If met, this would reflect an okay 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 6.2% to JP¥97.35. Before this earnings report, the analysts had been forecasting revenues of JP¥2.79t and earnings per share (EPS) of JP¥94.50 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥505, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Mitsubishi Motors analyst has a price target of JP¥610 per share, while the most pessimistic values it at JP¥440. 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 Mitsubishi Motors shareholders.

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 Mitsubishi Motors' revenue growth is expected to slow, with the forecast 2.9% annualised growth rate until the end of 2025 being well below the historical 6.0% 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 3.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Mitsubishi Motors is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Mitsubishi Motors following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than 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.

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 Mitsubishi Motors analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Mitsubishi Motors .

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com