Results: Fuji Electric Co., Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates
A week ago, Fuji Electric Co., Ltd. (TSE:6504) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 4.6% to hit JP¥273b. Fuji Electric also reported a statutory profit of JP¥141, which was an impressive 49% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the nine analysts covering Fuji Electric are now predicting revenues of JP¥1.30t in 2027. If met, this would reflect a credible 3.4% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥731, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.29t and earnings per share (EPS) of JP¥724 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Fuji Electric
There were no changes to revenue or earnings estimates or the price target of JP¥15,720, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Fuji Electric, with the most bullish analyst valuing it at JP¥20,500 and the most bearish at JP¥11,400 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. We would highlight that Fuji Electric's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2027 being well below the historical 6.5% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Fuji Electric is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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¥15,720, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Fuji Electric analysts - going out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Fuji Electric that you need to take into consideration.
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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.