Bearish: This Analyst Is Revising Their Futaba Industrial Co., Ltd. (TSE:7241) Revenue and EPS Prognostications

The latest analyst coverage could presage a bad day for Futaba Industrial Co., Ltd. (TSE:7241), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the latest downgrade, the lone analyst covering Futaba Industrial provided consensus estimates of JP¥690b revenue in 2025, which would reflect a perceptible 7.0% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to descend 18% to JP¥70.40 in the same period. Prior to this update, the analyst had been forecasting revenues of JP¥800b and earnings per share (EPS) of JP¥162 in 2025. Indeed, we can see that the analyst is a lot more bearish about Futaba Industrial's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Futaba Industrial

It'll come as no surprise then, to learn that the analyst has cut their price target 22% to JP¥747.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 13% by the end of 2025. This indicates a significant reduction from annual growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Futaba Industrial is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Futaba Industrial's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Futaba Industrial.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Futaba Industrial going out as far as 2027, and you can see them free on our platform here.

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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.