Analysts Have Made A Financial Statement On Isuzu Motors Limited's (TSE:7202) First-Quarter Report
Shareholders might have noticed that Isuzu Motors Limited (TSE:7202) filed its quarterly result this time last week. The early response was not positive, with shares down 9.6% to JP¥2,233 in the past week. It was a credible result overall, with revenues of JP¥833b and statutory earnings per share of JP¥74.12 both in line with analyst estimates, showing that Isuzu Motors is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from Isuzu Motors' 13 analysts is for revenues of JP¥3.74t in 2027. This reflects a modest 5.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 19% to JP¥249. Before this earnings report, the analysts had been forecasting revenues of JP¥3.74t and earnings per share (EPS) of JP¥249 in 2027. 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.
See our latest analysis for Isuzu Motors
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,558. 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. Currently, the most bullish analyst values Isuzu Motors at JP¥3,200 per share, while the most bearish prices it at JP¥1,900. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Isuzu Motors shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 8.0% growth on an annualised basis. That is in line with its 7.6% 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 Isuzu 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. 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. The consensus price target held steady at JP¥2,558, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Isuzu Motors going out to 2029, 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 Isuzu Motors 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.