Yamaha Motor Co., Ltd. Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

As you might know, Yamaha Motor Co., Ltd. (TSE:7272) last week released its latest quarterly, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 6.5% short of analyst estimates at JP¥626b, and statutory earnings of JP¥31.47 per share missed forecasts by 3.4%. 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. 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 most recent consensus for Yamaha Motor from twelve analysts is for revenues of JP¥2.67t in 2025. If met, it would imply a credible 4.3% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 82% to JP¥154. Before this earnings report, the analysts had been forecasting revenues of JP¥2.67t and earnings per share (EPS) of JP¥151 in 2025. So the consensus seems to have become somewhat more optimistic on Yamaha Motor's earnings potential following these results.

See our latest analysis for Yamaha Motor

The consensus price target was unchanged at JP¥1,268, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Yamaha Motor, with the most bullish analyst valuing it at JP¥1,650 and the most bearish at JP¥1,000 per share. 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 Yamaha Motor's past performance and to peers in the same industry. We would highlight that Yamaha Motor's revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.7% annually. Even after the forecast slowdown in growth, it seems obvious that Yamaha Motor is also expected to grow faster than 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 Yamaha Motor following these results. 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. At Simply Wall St, we have a full range of analyst estimates for Yamaha 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 - Yamaha Motor has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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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.