Fujitsu Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Fujitsu Limited (TSE:6702) just released its first-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.4% to hit JP¥830b. Fujitsu also reported a statutory profit of JP¥9.18, which was an impressive 91% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Fujitsu

Following last week's earnings report, Fujitsu's twelve analysts are forecasting 2025 revenues to be JP¥3.73t, approximately in line with the last 12 months. Statutory earnings per share are expected to sink 13% to JP¥126 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥3.74t and earnings per share (EPS) of JP¥125 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of JP¥2,745, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Fujitsu analyst has a price target of JP¥3,000 per share, while the most pessimistic values it at JP¥2,000. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Fujitsu shareholders.

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 more thing stood out to us about these estimates, and it's the idea that Fujitsu's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 1.8% to the end of 2025. This tops off a historical decline of 0.8% a year 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 revenue grow 4.8% per year. So while a broad number of companies are forecast to grow, unfortunately Fujitsu is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Fujitsu. Long-term earnings power is much more important than next year's profits. We have forecasts for Fujitsu going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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