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Suzuki Motor Misses Quarterly EPS Estimate by $0.17, Shares Fall 4%

Suzuki Motor posted $0.91 quarterly EPS, missing the $1.08 consensus by $0.17; shares fell 4% to $56.43 as Citigroup and Zacks nonetheless upgraded the stock.

Exhibit ASuzuki Motor (OTCMKTS:SZKMY) Issues Quarterly Earnings Results
Suzuki Motor (OTCMKTS:SZKMY) Issues Quarterly Earnings Results — This_is_Engineering / pixabay

Suzuki Motor (OTCMKTS:SZKMY) reported quarterly earnings of $0.91 per share on Tuesday, missing the consensus estimate of $1.08 by $0.17, according to Zacks. The miss pushed the ADR (American Depositary Receipt, a US-traded certificate of a foreign share) down $2.33, or 4.0%, to $56.43 on volume of 187,511 shares — more than double its average of 80,911... correction: 80,924 shares.

For finance teams tracking the quality of the print, the underlying profitability held up. Suzuki posted a net margin (net income as a share of revenue) of 7.85% and a return on equity (net income against shareholder equity) of 12.49%. Management also updated its FY 2026 guidance to earnings per share of 5.470-5.470, effectively a point estimate.

What does the balance sheet look like?

The company carries a debt-to-equity ratio of 0.13, a quick ratio (liquid assets over current liabilities) of 1.36 and a current ratio of 1.81. In practical terms, Suzuki runs a lightly levered balance sheet with comfortable short-term coverage — roughly $1.81 of current assets for every dollar of current liabilities.

Valuation metrics from the session:

  • Market capitalization: $27.22 billion
  • Price-to-earnings ratio: 8.11
  • Beta (sensitivity to broad market moves): 0.59
  • 50-day moving average: $52.47
  • 200-day moving average: $50.92
  • 52-week range: $41.10 to $64.94

At $56.43, the stock sits above both moving averages but well below its one-year high, leaving the shares roughly 13% off the $64.94 peak.

Why did analysts upgrade despite the miss?

Two research houses moved in the same direction within a week of the print. Zacks Research upgraded Suzuki Motor from a "strong sell" rating to "hold" on Thursday, August 20. Citigroup went further on Thursday, August 13, lifting its rating from "hold" to "strong-buy."

The analyst distribution now stands at one Strong Buy, one Buy and one Hold, producing an average rating of "Buy" on MarketBeat.com data. That a miss of nearly 16% against consensus coincided with upgrades, not downgrades, signals desks read the quarter's fundamentals — margin structure and guidance — as steadier than the headline EPS gap suggests.

What is behind the company?

Suzuki Motor Corporation is a Japanese manufacturer of automobiles, motorcycles and other mobility products. Michio Suzuki founded the business in 1909 as Suzuki Loom Works, a maker of weaving looms, before it expanded into motorized products and automobiles.

Its portfolio spans compact cars and passenger vehicles, motorcycles, outboard motors and select power products and mobility equipment. The company serves consumers and businesses in Japan and across global markets, with a significant automotive presence in India as well as in Asia, Europe and beyond.

For practitioners, the takeaway is a stock trading at 8.11 times earnings with a 0.59 beta — about half the volatility of the broad market — where analysts re-rated the name upward even after an earnings shortfall.

Audit trail

  1. Suzuki Motor reported $0.91 quarterly EPS vs. a $1.08 consensus, a $0.17 miss
  2. Shares fell 4.0% ($2.33) to $56.43 on volume of 187,511 shares
  3. Net margin was 7.85% and return on equity 12.49%; FY 2026 EPS guidance set at 5.470
  4. Citigroup upgraded to strong-buy on August 13; Zacks upgraded to hold on August 20
  5. Market cap stands at $27.22 billion with a P/E of 8.11 and beta of 0.59

via dailypolitical.com (Source)

Filed under

  • suzuki-motor
  • quarterly-results
  • eps
  • analyst-upgrades
  • adr
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Correspondent covering people, launches and day-to-day practice in corporate finance and the leaders who run it at CFO Observer.

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