The Kubota Corporation (TSE:6326) Full-Year Results Are Out And Analysts Have Published New Forecasts

Kubota Corporation (TSE:6326) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Kubota reported JP¥3.0t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥198 beat expectations, being 3.9% higher than what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Kubota

Taking into account the latest results, Kubota's ten analysts currently expect revenues in 2025 to be JP¥3.03t, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 4.9% to JP¥191 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥3.01t and earnings per share (EPS) of JP¥189 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,425. 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 Kubota, with the most bullish analyst valuing it at JP¥2,900 and the most bearish at JP¥2,000 per share. 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 Kubota shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Kubota's revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Kubota is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kubota's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥2,425, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Kubota going out to 2027, and you can see them free on our platform here.

Even so, be aware that Kubota is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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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.