Fudo Tetra Corporation (TSE:1813) Just Reported And Analysts Have Been Lifting Their Price Targets

Fudo Tetra Corporation (TSE:1813) last week reported its latest half-yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were roughly in line with estimates, with revenues of JP¥30b and statutory earnings per share of JP¥132. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for Fudo Tetra

Taking into account the latest results, the most recent consensus for Fudo Tetra from solitary analyst is for revenues of JP¥70.0b in 2025. If met, it would imply a meaningful 8.8% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 92% to JP¥165. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥70.5b and earnings per share (EPS) of JP¥164 in 2025. The consensus analyst doesn't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analyst reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 35% to JP¥3,100. It looks as though they previously had some doubts over whether the business would live up to their expectations.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fudo Tetra's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Fudo Tetra is forecast to grow faster in the future than it has in the past, with revenues expected to display 18% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.0% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 1.3% per year. Not only are Fudo Tetra's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Fudo Tetra going out as far as 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Fudo Tetra has 1 warning sign we think you should be aware of.

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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.