Broker Revenue Forecasts For Fukuoka Financial Group, Inc. (TSE:8354) Are Surging Higher

Celebrations may be in order for Fukuoka Financial Group, Inc. (TSE:8354) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Investor sentiment seems to be improving too, with the share price up 4.8% to JP¥3,945 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After the upgrade, the five analysts covering Fukuoka Financial Group are now predicting revenues of JP¥356b in 2025. If met, this would reflect a notable 18% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to accumulate 2.2% to JP¥379. Prior to this update, the analysts had been forecasting revenues of JP¥313b and earnings per share (EPS) of JP¥372 in 2025. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Fukuoka Financial Group

Even though revenue forecasts increased, there was no change to the consensus price target of JP¥4,499, suggesting the analysts are focused on earnings as the driver of value creation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Fukuoka Financial Group's growth to accelerate, with the forecast 39% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fukuoka Financial Group is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Fukuoka Financial Group.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Fukuoka Financial Group analysts - going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.