Mabuchi Motor Co., Ltd. Just Missed EPS By 11%: Here's What Analysts Think Will Happen Next

Mabuchi Motor Co., Ltd. (TSE:6592) just released its latest quarterly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at JP¥47b, statutory earnings missed forecasts by 11%, coming in at just JP¥26.46 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 3 warning signs about Mabuchi Motor. View them for free.

Taking into account the latest results, Mabuchi Motor's ten analysts currently expect revenues in 2025 to be JP¥195.1b, approximately in line with the last 12 months. Per-share earnings are expected to bounce 72% to JP¥129. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥197.7b and earnings per share (EPS) of JP¥130 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.

See our latest analysis for Mabuchi Motor

There were no changes to revenue or earnings estimates or the price target of JP¥2,549, suggesting that the company has met expectations in its recent result. 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. 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. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.0% by the end of 2025. This indicates a significant reduction from annual growth of 12% 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 4.0% per year. It's pretty clear that Mabuchi Motor's revenues are expected to perform substantially worse than the wider 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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. We have forecasts for Mabuchi Motor going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Mabuchi Motor 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.