Mitsubishi Heavy Industries, Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

The third-quarter results for Mitsubishi Heavy Industries, Ltd. (TSE:7011) were released last week, making it a good time to revisit its performance. It looks like the results were a bit of a negative overall. While revenues of JP¥1.3t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.0% to hit JP¥19.35 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Mitsubishi Heavy Industries

Taking into account the latest results, the consensus forecast from Mitsubishi Heavy Industries' 15 analysts is for revenues of JP¥5.34t in 2026. This reflects a notable 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 23% to JP¥93.47. Before this earnings report, the analysts had been forecasting revenues of JP¥5.34t and earnings per share (EPS) of JP¥93.17 in 2026. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,506. 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 Mitsubishi Heavy Industries at JP¥2,800 per share, while the most bearish prices it at JP¥1,900. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Mitsubishi Heavy Industries' growth to accelerate, with the forecast 6.4% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Mitsubishi Heavy Industries is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Mitsubishi Heavy Industries. Long-term earnings power is much more important than next year's profits. We have forecasts 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.