Toyota Boshoku Corporation (TSE:3116) 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 2.9% to hit JP¥540b. Toyota Boshoku reported statutory earnings per share (EPS) JP¥76.86, which was a notable 12% above what the analysts had forecast. 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, Toyota Boshoku’s eight analysts currently expect revenues in 2027 to be JP¥2.10t, approximately in line with the last 12 months. Per-share earnings are expected to bounce 71% to JP¥270. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.13t and earnings per share (EPS) of JP¥258 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Toyota Boshoku
The consensus price target was unchanged at JP¥2,290, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Toyota Boshoku, with the most bullish analyst valuing it at JP¥2,800 and the most bearish at JP¥1,950 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 Toyota Boshoku shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Toyota Boshoku’s past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 2.8% annualised decline to the end of 2027. That is a notable change from historical growth of 8.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.3% annually for the foreseeable future. It’s pretty clear that Toyota Boshoku’s revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Toyota Boshoku following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥2,290, 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. We have estimates – from multiple Toyota Boshoku analysts – going out to 2029, and you can see them free on our platform here.
Even so, be aware that Toyota Boshoku is showing 1 warning sign in our investment analysis , you should know about…
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