Toyota Industries Corporation Just Beat EPS By 20%: Here's What Analysts Think Will Happen Next

As you might know, Toyota Industries Corporation (TSE:6201) just kicked off its latest quarterly results with some very strong numbers. Toyota Industries beat earnings, with revenues hitting JP¥1.0t, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 20%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Toyota Industries after the latest results.

See our latest analysis for Toyota Industries

Following the latest results, Toyota Industries' 13 analysts are now forecasting revenues of JP¥4.11t in 2025. This would be a reasonable 3.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 12% to JP¥909. Before this earnings report, the analysts had been forecasting revenues of JP¥4.01t and earnings per share (EPS) of JP¥894 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of JP¥14,685, suggesting the analysts are focused on earnings as the driver of value creation. 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 Toyota Industries analyst has a price target of JP¥19,000 per share, while the most pessimistic values it at JP¥12,300. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. 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 4.9% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.9% annually. So it's pretty clear that, while Toyota Industries' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also upgraded their revenue forecasts, although the latest estimates suggest that Toyota Industries will grow in line with the overall industry. The consensus price target held steady at JP¥14,685, 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 estimates - from multiple Toyota Industries analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Toyota Industries is showing 1 warning sign in our investment analysis , 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.

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