Makita Corporation Just Recorded A 7.1% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Makita Corporation (TSE:6586) recently reported its annual numbers. The result was positive overall - although revenues of JP¥753b were in line with what the analysts predicted, Makita surprised by delivering a statutory profit of JP¥295 per share, modestly greater than expected. 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.

Our free stock report includes 2 warning signs investors should be aware of before investing in Makita. Read for free now.

Taking into account the latest results, Makita's 14 analysts currently expect revenues in 2026 to be JP¥761.7b, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 9.3% to JP¥267 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥763.2b and earnings per share (EPS) of JP¥272 in 2026. 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.

See our latest analysis for Makita

The analysts reconfirmed their price target of JP¥5,520, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Makita, with the most bullish analyst valuing it at JP¥6,500 and the most bearish at JP¥4,400 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Makita's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Makita's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.1% growth on an annualised basis. This is compared to a historical growth rate of 7.2% 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 4.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Makita is also expected to grow slower than other industry participants.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Makita's revenue is expected to perform worse 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Makita going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Makita that you need to take into consideration.

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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.