Fujitsu General Limited (TSE:6755) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Shareholders might have noticed that Fujitsu General Limited (TSE:6755) filed its first-quarter result this time last week. The early response was not positive, with shares down 7.1% to JP¥1,982 in the past week. It was a credible result overall, with revenues of JP¥80b and statutory earnings per share of JP¥29.29 both in line with analyst estimates, showing that Fujitsu General is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Fujitsu General

After the latest results, the six analysts covering Fujitsu General are now predicting revenues of JP¥342.6b in 2025. If met, this would reflect an okay 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 1,827% to JP¥76.69. In the lead-up to this report, the analysts had been modelling revenues of JP¥344.4b and earnings per share (EPS) of JP¥78.42 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥2,075, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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 Fujitsu General, with the most bullish analyst valuing it at JP¥2,300 and the most bearish at JP¥1,950 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Fujitsu General is an easy business to forecast or the the analysts are all using similar assumptions.

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 can infer from the latest estimates that forecasts expect a continuation of Fujitsu General'shistorical trends, as the 5.9% annualised revenue growth to the end of 2025 is roughly in line with the 6.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 2.0% per year. So it's pretty clear that Fujitsu General is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 forecasts for Fujitsu General going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Fujitsu General you should be aware of.

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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