Results: Makita Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

Makita Corporation (TSE:6586) defied analyst predictions to release its half-year results, which were ahead of market expectations. The company beat forecasts, with revenue of JP¥386b, some 5.6% above estimates, and statutory earnings per share (EPS) coming in at JP¥82.48, 68% ahead of expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Makita

Following last week's earnings report, Makita's 15 analysts are forecasting 2025 revenues to be JP¥757.4b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be JP¥225, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥753.7b and earnings per share (EPS) of JP¥215 in 2025. So the consensus seems to have become somewhat more optimistic on Makita's earnings potential following these results.

The consensus price target was unchanged at JP¥5,248, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Makita analyst has a price target of JP¥6,000 per share, while the most pessimistic values it at JP¥4,200. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 0.2% annualised decline to the end of 2025. That is a notable change from historical growth of 9.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.8% per year. It's pretty clear that Makita's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Makita's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥5,248, 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 Makita. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Makita going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.