Mitsubishi Motors Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Mitsubishi Motors Corporation (TSE:7211), given that the company fell short of expectations when it released its quarterly results last week. Results showed a clear earnings miss, with JP¥620b revenue coming in 8.8% lower than what the analystsexpected. Statutory earnings per share (EPS) of JP¥1.05 missed the mark badly, arriving some 60% below what was expected. 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.

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Taking into account the latest results, the most recent consensus for Mitsubishi Motors from twelve analysts is for revenues of JP¥3.08t in 2027. If met, it would imply an okay 6.1% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 198% to JP¥23.81. Before this earnings report, the analysts had been forecasting revenues of JP¥3.08t and earnings per share (EPS) of JP¥23.77 in 2027. 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.

See our latest analysis for Mitsubishi Motors

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥369. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Mitsubishi Motors, with the most bullish analyst valuing it at JP¥500 and the most bearish at JP¥300 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.

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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 8.2% growth on an annualised basis. That is in line with its 9.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.5% annually. So although Mitsubishi Motors is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still 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.

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 Mitsubishi Motors analysts - going out to 2029, and you can see them free on our platform here.

You still need to take note of risks, for example - Mitsubishi Motors has 3 warning signs (and 1 which is a bit concerning) we think you should know about.

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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.