Fujikura Ltd. Just Beat EPS By 13%: Here's What Analysts Think Will Happen Next

As you might know, Fujikura Ltd. (TSE:5803) just kicked off its latest yearly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 2.9% to hit JP¥979b. Fujikura reported statutory earnings per share (EPS) JP¥330, which was a notable 13% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 1 warning sign about Fujikura. View them for free.

Taking into account the latest results, the consensus forecast from Fujikura's nine analysts is for revenues of JP¥1.00t in 2026. This reflects a satisfactory 2.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 13% to JP¥372. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.03t and earnings per share (EPS) of JP¥382 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

See our latest analysis for Fujikura

The analysts made no major changes to their price target of JP¥7,455, suggesting the downgrades are not expected to have a long-term impact on Fujikura's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Fujikura analyst has a price target of JP¥8,400 per share, while the most pessimistic values it at JP¥6,600. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Fujikura's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 8.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Fujikura.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Fujikura going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Fujikura that you need to take into consideration.

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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.