Earnings Miss: GS Yuasa Corporation Missed EPS By 6.9% And Analysts Are Revising Their Forecasts

As you might know, GS Yuasa Corporation (TSE:6674) last week released its latest half-yearly, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 3.3% short of analyst estimates at JP¥265b, and statutory earnings of JP¥46.10 per share missed forecasts by 6.9%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for GS Yuasa

After the latest results, the seven analysts covering GS Yuasa are now predicting revenues of JP¥598.1b in 2025. If met, this would reflect a credible 4.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plunge 22% to JP¥275 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥596.1b and earnings per share (EPS) of JP¥273 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¥3,458, 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. Currently, the most bullish analyst values GS Yuasa at JP¥4,200 per share, while the most bearish prices it at JP¥2,600. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of GS Yuasa'shistorical trends, as the 9.9% annualised revenue growth to the end of 2025 is roughly in line with the 9.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. So although GS Yuasa is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 GS Yuasa going out to 2027, and you can see them free on our platform here..

Even so, be aware that GS Yuasa is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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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.