Shareholders might have noticed that Kubota Corporation (TSE:6326) filed its quarterly result this time last week. The early response was not positive, with shares down 4.6% to JP¥2,532 in the past week. Statutory earnings per share fell badly short of expectations, coming in at JP¥45.74, some 34% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at JP¥788b. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Kubota's eleven analysts is for revenues of JP¥3.44t in 2027. This reflects a credible 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 4.3% to JP¥229 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥3.44t and earnings per share (EPS) of JP¥231 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.
Check out our latest analysis for Kubota
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,168. 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. There are some variant perceptions on Kubota, with the most bullish analyst valuing it at JP¥4,040 and the most bearish at JP¥2,400 per share. 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 Kubota shareholders.
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. It's pretty clear that there is an expectation that Kubota's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 6.8% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.7% 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 Kubota.
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 Kubota's revenue is expected to perform worse 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 Kubota analysts - going out to 2028, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Kubota that you should be aware of.
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