Analysts Have Made A Financial Statement On Fuji Oil Co., Ltd.'s (TSE:2607) Half-Year Report

Investors in Fuji Oil Co., Ltd. (TSE:2607) had a good week, as its shares rose 5.4% to close at JP¥3,342 following the release of its interim results. Fuji Oil reported in line with analyst predictions, delivering revenues of JP¥194b and statutory earnings per share of JP¥61.54, suggesting the business is executing well and in line with its plan. 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.

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Taking into account the latest results, the most recent consensus for Fuji Oil from four analysts is for revenues of JP¥753.4b in 2026. If met, it would imply a reasonable 3.1% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 130% to JP¥261. In the lead-up to this report, the analysts had been modelling revenues of JP¥762.9b and earnings per share (EPS) of JP¥244 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Fuji Oil

The consensus price target was unchanged at JP¥4,110, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Fuji Oil at JP¥4,650 per share, while the most bearish prices it at JP¥3,400. 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.

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 Fuji Oil's revenue growth is expected to slow, with the forecast 6.2% annualised growth rate until the end of 2026 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 3.3% annually. Even after the forecast slowdown in growth, it seems obvious that Fuji Oil is also expected to grow faster than the wider industry.

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 Oil following these results. Happily, there were no major changes to revenue forecasts, with the business still 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.

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 Oil going out to 2028, and you can see them free on our platform here..

You still need to take note of risks, for example - Fuji Oil has 1 warning sign we think 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.