Analysts Have Just Cut Their Fukuoka Financial Group, Inc. (TSE:8354) Revenue Estimates By 23%

Today is shaping up negative for Fukuoka Financial Group, Inc. (TSE:8354) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the consensus from six analysts covering Fukuoka Financial Group is for revenues of JP¥268b in 2025, implying a perceptible 2.2% decline in sales compared to the last 12 months. Statutory earnings per share are presumed to step up 14% to JP¥370. Previously, the analysts had been modelling revenues of JP¥349b and earnings per share (EPS) of JP¥367 in 2025. Indeed we can see that the consensus opinion has undergone some fundamental changes following the recent consensus updates, with a pretty serious reduction to revenues and some minor tweaks to earnings numbers.

See our latest analysis for Fukuoka Financial Group

The consensus has reconfirmed its price target of JP¥4,635, showing that the analysts don't expect weaker sales expectationsthis year to have a material impact on Fukuoka Financial Group's market value.

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 2.2% by the end of 2025. This indicates a significant reduction from annual growth of 6.9% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.7% per year. So it's pretty clear that Fukuoka Financial Group's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Unfortunately they also downgraded their revenue estimates, and our aggregation of analyst estimates suggests that Fukuoka Financial Group revenue is expected to perform worse than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Fukuoka Financial Group going forwards.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Fukuoka Financial Group analysts - going out to 2027, and you can see them free on our platform here.

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