Komatsu's EPS in its latest results was 6.2% below market expectations, and analysts are revising their forecasts for the next fiscal year. The share price continued to fall in the week after the earnings announcement, and investors are focused on the outlook ahead.
Komatsu reported statutory EPS of ¥108 in its latest results, approximately 6.2% below analysts' forecasts. Revenue was ¥2.2 trillion, 5.7% above market expectations. Following the results, consensus estimates continue to be revised to assess the outlook for next year.
Analysts maintained and raised their forecast for 2027 revenue to ¥4.44 trillion and EPS to ¥450. However, there was no significant change from the previous forecast, and the range of growth expectations remains wide. The most bullish and most bearish price targets are far apart, indicating a wide range of scenarios for investment decisions.
Views differ on the long-term growth trajectory. Growth through the end of 2027 is forecast at a relatively low annual rate of 1.7%, compared with an industry-wide average of approximately 6.9%. This has prompted concerns that Komatsu's growth may slow relative to its peers, calling for caution in long-term investment decisions.