Earnings Miss: Mabuchi Motor Co., Ltd. Missed EPS By 15% And Analysts Are Revising Their Forecasts

Shareholders of Mabuchi Motor Co., Ltd. (TSE:6592) will be pleased this week, given that the stock price is up 10% to JP¥2,328 following its latest annual results. Revenues were in line with forecasts, at JP¥196b, although statutory earnings per share came in 15% below what the analysts expected, at JP¥101 per share. 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.

Check out our latest analysis for Mabuchi Motor

Following last week's earnings report, Mabuchi Motor's nine analysts are forecasting 2025 revenues to be JP¥199.6b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 30% to JP¥133. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥198.0b and earnings per share (EPS) of JP¥132 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.

The analysts reconfirmed their price target of JP¥2,584, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Mabuchi Motor, with the most bullish analyst valuing it at JP¥3,750 and the most bearish at JP¥2,200 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mabuchi Motor's past performance and to peers in the same industry. We would highlight that Mabuchi Motor's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Mabuchi Motor.

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 Mabuchi Motor'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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Mabuchi Motor going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with Mabuchi Motor .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.