Suzuki Motor Corporation Just Recorded A 10% Revenue Beat: Here's What Analysts Think

Last week saw the newest quarterly earnings release from Suzuki Motor Corporation (TSE:7269), an important milestone in the company's journey to build a stronger business. It was a mildly positive result, with revenues exceeding expectations at JP¥1.5t, while statutory earnings per share (EPS) of JP¥59.21 were in line with analyst forecasts. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Suzuki Motor

Taking into account the latest results, the most recent consensus for Suzuki Motor from five analysts is for revenues of JP¥5.77t in 2025. If met, it would imply a modest 2.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.5% to JP¥174. In the lead-up to this report, the analysts had been modelling revenues of JP¥5.69t and earnings per share (EPS) of JP¥167 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥2,057, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Suzuki Motor at JP¥2,400 per share, while the most bearish prices it at JP¥1,850. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We would highlight that Suzuki Motor's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.2% annually. Factoring in the forecast slowdown in growth, it looks like Suzuki Motor is forecast to grow at about the same rate as the wider industry.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Suzuki Motor going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Suzuki Motor has 1 warning sign we think 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.