Fuji Electric Co., Ltd. Just Recorded A 42% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a good week for Fuji Electric Co., Ltd. (TSE:6504) shareholders, because the company has just released its latest half-year results, and the shares gained 7.0% to JP¥8,319. Revenues were JP¥497b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥168, an impressive 42% ahead of estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Fuji Electric

Following last week's earnings report, Fuji Electric's eleven analysts are forecasting 2025 revenues to be JP¥1.13t, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 4.7% to JP¥578 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.13t and earnings per share (EPS) of JP¥564 in 2025. So the consensus seems to have become somewhat more optimistic on Fuji Electric's earnings potential following these results.

The consensus price target was unchanged at JP¥10,400, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Fuji Electric, with the most bullish analyst valuing it at JP¥12,300 and the most bearish at JP¥7,800 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fuji Electric's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Fuji Electric's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 5.3% 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 4.5% 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 Fuji Electric.

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 Fuji Electric following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥10,400, with the latest estimates not enough to have an impact on their price targets.

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 Electric 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 Electric 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.