Fujitsu Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Last week saw the newest annual earnings release from Fujitsu Limited (TSE:6702), an important milestone in the company's journey to build a stronger business. Revenues were JP¥3.8t, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥136, an impressive 28% ahead of estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Fujitsu

Taking into account the latest results, Fujitsu's twelve analysts currently expect revenues in 2025 to be JP¥3.71t, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 4.0% to JP¥144. Before this earnings report, the analysts had been forecasting revenues of JP¥3.82t and earnings per share (EPS) of JP¥157 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of JP¥2,628, suggesting the downgrades are not expected to have a long-term impact on Fujitsu's valuation. 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¥3,500 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 1.1% annualised revenue decline to the end of 2025 is roughly in line with the historical trend, which saw revenues shrink 1.2% annually 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 5.0% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Fujitsu to suffer worse 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 Fujitsu. On the negative side, they also downgraded their revenue estimates, and 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.

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.