Mitsubishi Motors Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Mitsubishi Motors Corporation (TSE:7211) shareholders are probably feeling a little disappointed, since its shares fell 6.7% to JP¥448 in the week after its latest yearly results. Revenues were JP¥2.8t, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥104 were also better than expected, beating analyst predictions by 12%. 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.

Check out our latest analysis for Mitsubishi Motors

Taking into account the latest results, the current consensus from Mitsubishi Motors' eleven analysts is for revenues of JP¥2.86t in 2025. This would reflect a satisfactory 2.6% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decrease 7.7% to JP¥96.09 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥2.85t and earnings per share (EPS) of JP¥92.76 in 2025. So the consensus seems to have become somewhat more optimistic on Mitsubishi Motors' earnings potential following these results.

The consensus price target was unchanged at JP¥522, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Mitsubishi Motors at JP¥675 per share, while the most bearish prices it at JP¥450. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Mitsubishi Motors' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 3.8% 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 3.2% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mitsubishi Motors' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Mitsubishi Motors' revenue 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 forecasts for Mitsubishi Motors 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 (including 1 which doesn't sit too well with us) .

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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.