Results: Mazda Motor Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Mazda Motor Corporation (TSE:7261) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 3.2% to hit JP¥1.3t. Mazda Motor also reported a statutory profit of JP¥87.60, which was an impressive 30% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Mazda Motor after the latest results.

Check out our latest analysis for Mazda Motor

After the latest results, the 15 analysts covering Mazda Motor are now predicting revenues of JP¥5.14t in 2026. If met, this would reflect an okay 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 18% to JP¥248. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥5.14t and earnings per share (EPS) of JP¥249 in 2026. 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.

The analysts reconfirmed their price target of JP¥1,382, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Mazda Motor at JP¥2,500 per share, while the most bearish prices it at JP¥900. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on 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. It's pretty clear that there is an expectation that Mazda Motor's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.1% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this to the 10 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.1% per year. So it's pretty clear that, while Mazda Motor's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥1,382, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Mazda Motor going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Mazda Motor that you should be aware of.

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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.