Fujikura Ltd. Just Recorded A 15% Revenue Beat: Here's What Analysts Think

Shareholders of Fujikura Ltd. (TSE:5803) will be pleased this week, given that the stock price is up 17% to JP¥7,366 following its latest quarterly results. Fujikura beat revenue forecasts by a solid 15% to hit JP¥263b. Statutory earnings per share came in at JP¥185, in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Fujikura

Taking into account the latest results, the consensus forecast from Fujikura's ten analysts is for revenues of JP¥967.4b in 2026. This reflects a credible 6.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 31% to JP¥352. Before this earnings report, the analysts had been forecasting revenues of JP¥953.0b and earnings per share (EPS) of JP¥341 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of JP¥7,166, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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. There are some variant perceptions on Fujikura, with the most bullish analyst valuing it at JP¥8,400 and the most bearish at JP¥6,100 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Fujikura shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. 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 4.9% growth on an annualised basis. This is compared to a historical growth rate of 6.9% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.9% annually. Factoring in the forecast slowdown in growth, it looks like Fujikura is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Fujikura following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Fujikura going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Fujikura .

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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.