Revenue Beat: Suzuki Motor Corporation Beat Analyst Estimates By 6.0%

It's been a pretty great week for Suzuki Motor Corporation (TSE:7269) shareholders, with its shares surging 11% to JP¥1,643 in the week since its latest interim results. Results overall were respectable, with statutory earnings of JP¥113 per share roughly in line with what the analysts had forecast. Revenues of JP¥2.9t came in 6.0% ahead of analyst predictions. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Suzuki Motor after the latest results.

View our latest analysis for Suzuki Motor

Following last week's earnings report, Suzuki Motor's 15 analysts are forecasting 2025 revenues to be JP¥5.70t, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 6.2% to JP¥173 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥5.70t and earnings per share (EPS) of JP¥168 in 2025. So the consensus seems to have become somewhat more optimistic on Suzuki Motor's earnings potential following these results.

There's been no major changes to the consensus price target of JP¥2,047, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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 Suzuki Motor analyst has a price target of JP¥2,300 per share, while the most pessimistic values it at JP¥1,800. This is a very narrow spread of estimates, implying either that Suzuki Motor is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Suzuki Motor's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.2% 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 Suzuki Motor.

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 Suzuki Motor following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Suzuki Motor's 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Suzuki Motor. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Suzuki Motor analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Suzuki Motor's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.