FP Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, FP Corporation (TSE:7947) recently reported its first-quarter numbers. It was not a great result overall. While revenues of JP¥55b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 20% to hit JP¥17.97 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for FP

Taking into account the latest results, the most recent consensus for FP from six analysts is for revenues of JP¥234.8b in 2025. If met, it would imply a satisfactory 4.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 11% to JP¥150. In the lead-up to this report, the analysts had been modelling revenues of JP¥233.2b and earnings per share (EPS) of JP¥153 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥3,385, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 FP analyst has a price target of JP¥4,000 per share, while the most pessimistic values it at JP¥2,700. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that FP's rate of growth is expected to accelerate meaningfully, with the forecast 6.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 14% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, FP is expected to grow slower than the wider 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. 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¥3,385, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for FP going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for FP that you need to be mindful 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