Suzuki Motor Corporation (TSE:7269) Half-Yearly Results: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Suzuki Motor Corporation (TSE:7269) filed its interim result this time last week. The early response was not positive, with shares down 4.3% to JP¥2,209 in the past week. It looks like the results were a bit of a negative overall. While revenues of JP¥2.9t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.9% to hit JP¥99.93 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Suzuki Motor's 16 analysts is for revenues of JP¥6.00t in 2026. This would reflect an okay 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decrease 6.6% to JP¥189 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥5.99t and earnings per share (EPS) of JP¥191 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Suzuki Motor

The analysts reconfirmed their price target of JP¥2,558, 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 Suzuki Motor at JP¥3,000 per share, while the most bearish prices it at JP¥2,000. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Suzuki Motor shareholders.

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 5.9% annualised growth rate until the end of 2026 being well below the historical 14% 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) 2.8% per year. So it's pretty clear that, while Suzuki Motor's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Suzuki Motor analysts - going out to 2028, 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.