Analysts Have Made A Financial Statement On Toyota Industries Corporation's (TSE:6201) Full-Year Report

It's been a good week for Toyota Industries Corporation (TSE:6201) shareholders, because the company has just released its latest annual results, and the shares gained 4.6% to JP¥15,030. It looks like the results were a bit of a negative overall. While revenues of JP¥3.8t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.3% to hit JP¥737 per share. 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.

See our latest analysis for Toyota Industries

Following the latest results, Toyota Industries' twelve analysts are now forecasting revenues of JP¥3.96t in 2025. This would be a credible 3.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 20% to JP¥882. In the lead-up to this report, the analysts had been modelling revenues of JP¥3.91t and earnings per share (EPS) of JP¥859 in 2025. So the consensus seems to have become somewhat more optimistic on Toyota Industries' earnings potential following these results.

The consensus price target was unchanged at JP¥15,346, 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. There are some variant perceptions on Toyota Industries, with the most bullish analyst valuing it at JP¥20,000 and the most bearish at JP¥12,400 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Toyota Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.3% 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 4.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that Toyota Industries is also expected to grow slower than other industry participants.

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 Toyota Industries following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Toyota Industries' revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥15,346, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Toyota Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for Toyota Industries going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Toyota Industries that you need to be mindful 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.