Revenue Beat: Fuji Corporation Exceeded Revenue Forecasts By 13% And Analysts Are Updating Their Estimates

Fuji Corporation (TSE:6134) came out with its half-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a mildly positive result, with revenues exceeding expectations at JP¥32b, while statutory earnings per share (EPS) of JP¥111 were in line with analyst forecasts. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Fuji

Following the latest results, Fuji's six analysts are now forecasting revenues of JP¥133.5b in 2025. This would be a credible 4.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 22% to JP¥139. Before this earnings report, the analysts had been forecasting revenues of JP¥132.9b and earnings per share (EPS) of JP¥137 in 2025. The consensus analysts don'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.

There were no changes to revenue or earnings estimates or the price target of JP¥2,745, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Fuji analyst has a price target of JP¥3,000 per share, while the most pessimistic values it at JP¥2,270. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Fuji's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 9.6% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.0% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.7% annually. Not only are Fuji's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.

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. We have estimates - from multiple Fuji analysts - going out to 2027, and you can see them free on our platform here.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.