Earnings Beat: Mitsubishi Heavy Industries, Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Mitsubishi Heavy Industries, Ltd. (TSE:7011) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of JP¥1.1t, some 5.8% above estimates, and statutory earnings per share (EPS) coming in at JP¥18.53, 35% ahead of expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Mitsubishi Heavy Industries

Taking into account the latest results, the consensus forecast from Mitsubishi Heavy Industries' twelve analysts is for revenues of JP¥4.94t in 2025. This reflects a satisfactory 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 14% to JP¥78.22. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥4.92t and earnings per share (EPS) of JP¥78.74 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of JP¥1,809, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Mitsubishi Heavy Industries, with the most bullish analyst valuing it at JP¥2,400 and the most bearish at JP¥1,150 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mitsubishi Heavy Industries' past performance and to peers in the same industry. The analysts are definitely expecting Mitsubishi Heavy Industries' growth to accelerate, with the forecast 4.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Mitsubishi Heavy Industries is expected to grow at about the same rate as 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥1,809, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Mitsubishi Heavy Industries going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Mitsubishi Heavy Industries that we have uncovered.

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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.