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

The annual results for Suzuki Motor Corporation (TSE:7269) were released last week, making it a good time to revisit its performance. Suzuki Motor reported JP¥5.8t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥216 beat expectations, being 7.5% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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, the consensus forecast from Suzuki Motor's 16 analysts is for revenues of JP¥5.98t in 2026. This reflects a credible 2.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 8.1% to JP¥198 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥5.97t and earnings per share (EPS) of JP¥208 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Check out our latest analysis for Suzuki Motor

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥2,306, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Suzuki Motor analyst has a price target of JP¥2,700 per share, while the most pessimistic values it at JP¥1,810. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the 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 2.6% growth on an annualised basis. This is compared to a historical growth rate of 15% 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 2.6% per year. So it's pretty clear that, while Suzuki Motor's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Suzuki Motor. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥2,306, 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. At Simply Wall St, we have a full range of analyst estimates for Suzuki Motor going out to 2028, 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.