The Mitsubishi Corporation (TSE:8058) Half-Year Results Are Out And Analysts Have Published New Forecasts

Mitsubishi Corporation (TSE:8058) shareholders are probably feeling a little disappointed, since its shares fell 2.0% to JP¥3,637 in the week after its latest half-year results. It looks like the results were a bit of a negative overall. While revenues of JP¥4.4t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.8% to hit JP¥40.28 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Mitsubishi's twelve analysts are now forecasting revenues of JP¥18t in 2026. This would be a reasonable 3.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.0% to JP¥189. Before this earnings report, the analysts had been forecasting revenues of JP¥18t and earnings per share (EPS) of JP¥191 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.

View our latest analysis for Mitsubishi

Even though revenue forecasts increased, there was no change to the consensus price target of JP¥3,462, suggesting the analysts are focused on earnings as the driver of value creation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Mitsubishi, with the most bullish analyst valuing it at JP¥4,200 and the most bearish at JP¥2,600 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mitsubishi's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Mitsubishi'shistorical trends, as the 6.1% annualised revenue growth to the end of 2026 is roughly in line with the 6.9% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.3% annually. So although Mitsubishi 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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.

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 estimates - from multiple Mitsubishi analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Mitsubishi that you need to be mindful of.

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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.