Earnings Beat: Fukuyama Transporting Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Fukuyama Transporting Co., Ltd. (TSE:9075) shareholders are probably feeling a little disappointed, since its shares fell 5.9% to JP¥3,350 in the week after its latest annual results. Fukuyama Transporting reported JP¥302b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥218 beat expectations, being 9.6% higher than what the analysts expected. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 2 warning signs about Fukuyama Transporting. View them for free.

Taking into account the latest results, the current consensus from Fukuyama Transporting's four analysts is for revenues of JP¥312.0b in 2026. This would reflect a reasonable 3.1% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 31% to JP¥290. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥315.1b and earnings per share (EPS) of JP¥253 in 2026. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for Fukuyama Transporting

The consensus price target was unchanged at JP¥3,590, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Fukuyama Transporting at JP¥3,900 per share, while the most bearish prices it at JP¥3,100. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's clear from the latest estimates that Fukuyama Transporting's rate of growth is expected to accelerate meaningfully, with the forecast 3.1% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 0.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Fukuyama Transporting to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fukuyama Transporting's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥3,590, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Fukuyama Transporting analysts - going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Fukuyama Transporting 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.