Suzuki Motor Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, Suzuki Motor Corporation (TSE:7269) just kicked off its latest third-quarter results with some very strong numbers. The company beat forecasts, with revenue of JP¥1.4t, some 2.4% above estimates, and statutory earnings per share (EPS) coming in at JP¥48.85, 21% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Suzuki Motor

Taking into account the latest results, the most recent consensus for Suzuki Motor from 17 analysts is for revenues of JP¥5.93t in 2026. If met, it would imply a credible 2.1% increase on its revenue over the past 12 months. Statutory per share are forecast to be JP¥201, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥5.96t and earnings per share (EPS) of JP¥193 in 2026. So the consensus seems to have become somewhat more optimistic on Suzuki Motor's earnings potential following these results.

The consensus price target was unchanged at JP¥2,219, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Suzuki Motor at JP¥2,700 per share, while the most bearish prices it at JP¥1,700. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Suzuki Motor's past performance and to peers in the same industry. 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 2026 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 14% 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 3.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Suzuki Motor 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 Suzuki Motor's earnings potential next year. 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 Suzuki Motor. Long-term earnings power is much more important than next year's profits. We have forecasts for Suzuki Motor going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Suzuki Motor Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.