Stock Analysis

Analysts Have Made A Financial Statement On Mazda Motor Corporation's (TSE:7261) Yearly Report

TSE:7261
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As you might know, Mazda Motor Corporation (TSE:7261) recently reported its annual numbers. Mazda Motor reported JP¥4.8t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥330 beat expectations, being 2.2% higher than what the analysts 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Mazda Motor

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TSE:7261 Earnings and Revenue Growth June 29th 2024

Taking into account the latest results, the consensus forecast from Mazda Motor's 15 analysts is for revenues of JP¥5.20t in 2025. This reflects a satisfactory 7.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 8.2% to JP¥303 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥5.19t and earnings per share (EPS) of JP¥300 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of JP¥1,911, suggesting that the company has met expectations in its recent result. 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 Mazda Motor analyst has a price target of JP¥2,550 per share, while the most pessimistic values it at JP¥1,400. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Mazda Motor'shistorical trends, as the 7.8% annualised revenue growth to the end of 2025 is roughly in line with the 6.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.4% per year. So although Mazda Motor is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Mazda Motor analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Mazda Motor is showing 1 warning sign in our investment analysis , you should know about...

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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.