Earnings Update: Fuji Corporation (TSE:6134) Just Reported And Analysts Are Boosting Their Estimates

Investors in Fuji Corporation (TSE:6134) had a good week, as its shares rose 8.9% to close at JP¥3,158 following the release of its half-yearly results. It was a workmanlike result, with revenues of JP¥80b coming in 4.7% ahead of expectations, and statutory earnings per share of JP¥120, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fuji after the latest results.

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Taking into account the latest results, the current consensus from Fuji's five analysts is for revenues of JP¥164.6b in 2026. This would reflect a notable 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 26% to JP¥210. Before this earnings report, the analysts had been forecasting revenues of JP¥154.1b and earnings per share (EPS) of JP¥185 in 2026. So it seems there's been a definite increase in optimism about Fuji's future following the latest results, with a solid gain to the earnings per share forecasts in particular.

View our latest analysis for Fuji

With these upgrades, we're not surprised to see that the analysts have lifted their price target 16% to JP¥3,512per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Fuji analyst has a price target of JP¥4,000 per share, while the most pessimistic values it at JP¥2,700. 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 Fuji shareholders.

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. One thing stands out from these estimates, which is that Fuji is forecast to grow faster in the future than it has in the past, with revenues expected to display 31% annualised growth until the end of 2026. If achieved, this would be a much better result than the 1.6% 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 5.0% per year. So it looks like Fuji is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fuji's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Fuji going out to 2028, and you can see them free on our platform here.

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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.