FUJIFILM Holdings Corporation Just Missed Earnings - But Analysts Have Updated Their Models
It's been a mediocre week for FUJIFILM Holdings Corporation (TSE:4901) shareholders, with the stock dropping 14% to JP¥3,236 in the week since its latest first-quarter results. Results overall were not great, with earnings of JP¥31.26 per share falling drastically short of analyst expectations. Meanwhile revenues hit JP¥826b and were slightly better than forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the 13 analysts covering FUJIFILM Holdings are now predicting revenues of JP¥3.52t in 2027. If met, this would reflect an okay 2.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.8% to JP¥237. Before this earnings report, the analysts had been forecasting revenues of JP¥3.51t and earnings per share (EPS) of JP¥237 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 FUJIFILM Holdings
The analysts reconfirmed their price target of JP¥4,108, showing that the business is executing well and in line with expectations. 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 FUJIFILM Holdings at JP¥5,000 per share, while the most bearish prices it at JP¥3,200. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the FUJIFILM Holdings' past performance and to peers in the same industry. We would highlight that FUJIFILM Holdings' revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2027 being well below the historical 7.2% p.a. growth over the last five years. Compare this to the 21 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.1% per year. Factoring in the forecast slowdown in growth, it looks like FUJIFILM Holdings is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥4,108, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on FUJIFILM Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple FUJIFILM Holdings analysts - going out to 2029, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with FUJIFILM Holdings , and understanding it should be part of your investment process.
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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.