Analysts Are Updating Their Fanuc Corporation (TSE:6954) Estimates After Its First-Quarter Results

Last week, you might have seen that Fanuc Corporation (TSE:6954) released its first-quarter result to the market. The early response was not positive, with shares down 9.9% to JP¥6,114 in the past week. The result was positive overall - although revenues of JP¥231b were in line with what the analysts predicted, Fanuc surprised by delivering a statutory profit of JP¥54.63 per share, modestly greater than 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fanuc after the latest results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the most recent consensus for Fanuc from 19 analysts is for revenues of JP¥958.7b in 2027. If met, it would imply a satisfactory 7.4% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 14% to JP¥219. In the lead-up to this report, the analysts had been modelling revenues of JP¥948.3b and earnings per share (EPS) of JP¥214 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Fanuc

The consensus price target was unchanged at JP¥7,435, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Fanuc, with the most bullish analyst valuing it at JP¥9,000 and the most bearish at JP¥5,600 per share. 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 Fanuc shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Fanuc's rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.6% 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 6.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Fanuc 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 Fanuc'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¥7,435, 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. At Simply Wall St, we have a full range of analyst estimates for Fanuc going out to 2029, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Fanuc .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.