Mitsubishi Motors Corporation Just Missed Earnings; Here's What Analysts Are Forecasting Now

Mitsubishi Motors Corporation (TSE:7211) shareholders are probably feeling a little disappointed, since its shares fell 3.4% to JP¥364 in the week after its latest interim results. Things were not great overall, with a surprise (statutory) loss of JP¥6.90 per share on revenues of JP¥1.3t, even though the analysts had been expecting a profit. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, Mitsubishi Motors' twelve analysts currently expect revenues in 2026 to be JP¥2.75t, approximately in line with the last 12 months. Mitsubishi Motors is also expected to turn profitable, with statutory earnings of JP¥20.79 per share. Before this earnings report, the analysts had been forecasting revenues of JP¥2.74t and earnings per share (EPS) of JP¥20.34 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Mitsubishi Motors

There's been no major changes to the consensus price target of JP¥421, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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 Mitsubishi Motors, with the most bullish analyst valuing it at JP¥550 and the most bearish at JP¥370 per share. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Mitsubishi Motors' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.9% growth on an annualised basis. This is compared to a historical growth rate of 12% 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 2.8% 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 Mitsubishi Motors.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Mitsubishi Motors. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Mitsubishi Motors going out to 2028, and you can see them 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.