Results: Hino Motors, Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

Hino Motors, Ltd. (TSE:7205) last week reported its latest half-yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Hino Motors reported JP¥743b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥39.20 beat expectations, being 8.2% higher than what the analysts expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Hino Motors' ten analysts currently expect revenues in 2026 to be JP¥1.57t, approximately in line with the last 12 months. Per-share earnings are expected to jump 54% to JP¥65.27. Before this earnings report, the analysts had been forecasting revenues of JP¥1.57t and earnings per share (EPS) of JP¥44.26 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.

View our latest analysis for Hino Motors

There's been no major changes to the consensus price target of JP¥400, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Hino Motors, with the most bullish analyst valuing it at JP¥500 and the most bearish at JP¥330 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hino Motors' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.3% by the end of 2026. This indicates a significant reduction from annual growth of 1.8% 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 4.9% per year. It's pretty clear that Hino Motors' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Hino Motors' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hino Motors' revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥400, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Hino Motors analysts - going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Hino Motors , and understanding it should be part of your investment process.

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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.