Fujita Kanko Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Fujita Kanko Inc. (TSE:9722) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of JP¥76b were in line with what the analyst predicted, Fujita Kanko surprised by delivering a statutory profit of JP¥734 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Fujita Kanko

After the latest results, the solitary analyst covering Fujita Kanko are now predicting revenues of JP¥79.4b in 2025. If met, this would reflect a credible 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 8.9% to JP¥694 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥76.6b and earnings per share (EPS) of JP¥776 in 2025. So it's pretty clear the analyst has mixed opinions on Fujita Kanko after the latest results; even though they upped their revenue numbers, it came at the cost of a substantial drop in per-share earnings expectations.

There's been no major changes to the price target of JP¥9,710, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Fujita Kanko's revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2025 being well below the historical 13% 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 6.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Fujita Kanko is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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 in mind, we wouldn't be too quick to come to a conclusion on Fujita Kanko. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Fujita Kanko (at least 1 which is concerning) , and understanding them should be part of your investment process.

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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.