Mazda Motor Corporation (TSE:7261) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 3.5% to hit JP¥1.3t. Mazda Motor also reported a statutory profit of JP¥47.00, which was an impressive 25% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Mazda Motor after the latest results.
After the latest results, the 14 analysts covering Mazda Motor are now predicting revenues of JP¥5.40t in 2027. If met, this would reflect an okay 5.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 8.3% to JP¥155 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥5.37t and earnings per share (EPS) of JP¥156 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.
Check out our latest analysis for Mazda Motor
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,286. 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 Mazda Motor analyst has a price target of JP¥1,800 per share, while the most pessimistic values it at JP¥1,100. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Mazda Motor's revenue growth is expected to slow, with the forecast 7.7% annualised growth rate until the end of 2027 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.2% annually. Even after the forecast slowdown in growth, it seems obvious that Mazda Motor is also 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. 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. At Simply Wall St, we have a full range of analyst estimates for Mazda Motor going out to 2029, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Mazda Motor that 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.