Fujitsu Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Fujitsu Limited (TSE:6702) last week released its latest half-yearly, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with JP¥1.7t revenue coming in 4.0% lower than what the analystsexpected. Statutory earnings per share (EPS) of JP¥10.21 missed the mark badly, arriving some 48% below what was expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Fujitsu

Taking into account the latest results, Fujitsu's twelve analysts currently expect revenues in 2025 to be JP¥3.80t, approximately in line with the last 12 months. Statutory earnings per share are expected to shrink 8.0% to JP¥127 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥3.79t and earnings per share (EPS) of JP¥137 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to 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¥3,249, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. The most optimistic Fujitsu analyst has a price target of JP¥3,700 per share, while the most pessimistic values it at JP¥2,000. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. One thing stands out from these estimates, which is that Fujitsu is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.3% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.4% annual decline 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 5.3% per year. So although Fujitsu's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Fujitsu. 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¥3,249, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Fujitsu analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Fujitsu's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.