Fuji Electric Co., Ltd. (TSE:6504) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Fuji Electric Co., Ltd. (TSE:6504) filed its quarterly result this time last week. The early response was not positive, with shares down 9.0% to JP¥8,121 in the past week. It looks like the results were a bit of a negative overall. While revenues of JP¥236b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.4% to hit JP¥80.34 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Fuji Electric

After the latest results, the twelve analysts covering Fuji Electric are now predicting revenues of JP¥1.14t in 2025. If met, this would reflect an okay 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.2% to JP¥559. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.13t and earnings per share (EPS) of JP¥551 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥10,609. 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 Electric analyst has a price target of JP¥12,000 per share, while the most pessimistic values it at JP¥7,800. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Fuji Electric's revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2025 being well below the historical 4.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Fuji Electric is also expected to grow slower than other industry participants.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Fuji Electric's revenue is expected to 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Fuji Electric going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Fuji Electric that we have uncovered.

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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.

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