Analysts Have Made A Financial Statement On Fukuyama Transporting Co., Ltd.'s (TSE:9075) Half-Yearly Report

Last week, you might have seen that Fukuyama Transporting Co., Ltd. (TSE:9075) released its interim result to the market. The early response was not positive, with shares down 6.1% to JP¥3,525 in the past week. It was a workmanlike result, with revenues of JP¥73b coming in 3.1% ahead of expectations, and statutory earnings per share of JP¥194, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Fukuyama Transporting

Following last week's earnings report, Fukuyama Transporting's five analysts are forecasting 2025 revenues to be JP¥297.2b, approximately in line with the last 12 months. Per-share earnings are expected to rise 4.6% to JP¥231. In the lead-up to this report, the analysts had been modelling revenues of JP¥297.8b and earnings per share (EPS) of JP¥246 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥3,754, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Fukuyama Transporting at JP¥4,400 per share, while the most bearish prices it at JP¥3,040. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Fukuyama Transporting's rate of growth is expected to accelerate meaningfully, with the forecast 2.8% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 0.09% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.5% annually. Fukuyama Transporting is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Fukuyama Transporting going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Fukuyama Transporting has 2 warning signs we think you should be aware 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.