Fuji Media Holdings, Inc. Just Beat EPS By 13%: Here's What Analysts Think Will Happen Next

Fuji Media Holdings, Inc. (TSE:4676) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a credible result overall - although revenues of JP¥566b were in line with what the analysts predicted, Fuji Media Holdings surprised by delivering a statutory profit of JP¥169 per share, a notable 13% above 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.

Check out our latest analysis for Fuji Media Holdings

After the latest results, the five analysts covering Fuji Media Holdings are now predicting revenues of JP¥597.7b in 2025. If met, this would reflect a modest 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dive 23% to JP¥134 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥570.3b and earnings per share (EPS) of JP¥139 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a modest to revenue, the consensus also made a small dip in its earnings per share forecasts.

The consensus price target was unchanged at JP¥1,888, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. Currently, the most bullish analyst values Fuji Media Holdings at JP¥2,100 per share, while the most bearish prices it at JP¥1,600. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Fuji Media Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

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. One thing stands out from these estimates, which is that Fuji Media Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.5% annualised growth until the end of 2025. If achieved, this would be a much better result than the 4.9% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.0% per year. Not only are Fuji Media Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Fuji Media Holdings. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at JP¥1,888, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Fuji Media Holdings analysts - 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 Fuji Media Holdings 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.