Results: Yamaha Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for Yamaha Corporation (TSE:7951) shareholders, because the company has just released its latest full-year results, and the shares gained 9.1% to JP¥3,582. The result was positive overall - although revenues of JP¥463b were in line with what the analysts predicted, Yamaha surprised by delivering a statutory profit of JP¥176 per share, modestly greater than 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Yamaha after the latest results.

View our latest analysis for Yamaha

Taking into account the latest results, Yamaha's nine analysts currently expect revenues in 2025 to be JP¥466.7b, approximately in line with the last 12 months. Statutory earnings per share are predicted to grow 13% to JP¥203. Before this earnings report, the analysts had been forecasting revenues of JP¥467.0b and earnings per share (EPS) of JP¥203 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¥4,050, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Yamaha analyst has a price target of JP¥6,400 per share, while the most pessimistic values it at JP¥3,400. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Yamaha's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2025 being well below the historical 2.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Yamaha.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Yamaha's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥4,050, with the latest estimates not enough to have an impact on their price targets.

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 Yamaha going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Yamaha you should be aware 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.