The FP Corporation (TSE:7947) Full-Year Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that FP Corporation (TSE:7947) filed its annual result this time last week. The early response was not positive, with shares down 4.0% to JP¥2,917 in the past week. It was a credible result overall, with revenues of JP¥236b and statutory earnings per share of JP¥154 both in line with analyst estimates, showing that FP is executing in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the most recent consensus for FP from six analysts is for revenues of JP¥244.6b in 2026. If met, it would imply a reasonable 3.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 11% to JP¥171. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥245.3b and earnings per share (EPS) of JP¥171 in 2026. 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.

View our latest analysis for FP

There were no changes to revenue or earnings estimates or the price target of JP¥3,555, suggesting that the company has met expectations in its recent result. 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 FP, with the most bullish analyst valuing it at JP¥4,000 and the most bearish at JP¥3,200 per share. This is a very narrow spread of estimates, implying either that FP is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of FP'shistorical trends, as the 3.8% annualised revenue growth to the end of 2026 is roughly in line with the 4.6% 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 2.4% per year. So although FP is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for FP going out to 2028, and you can see them free on our platform here.

It might also be worth considering whether FP's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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

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.