Fuji Kyuko Co., Ltd. (TSE:9010) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were roughly in line with estimates, with revenues of JP¥13b and statutory earnings per share of JP¥109. 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.
After the latest results, the three analysts covering Fuji Kyuko are now predicting revenues of JP¥56.3b in 2027. If met, this would reflect an okay 4.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 5.5% to JP¥115. In the lead-up to this report, the analysts had been modelling revenues of JP¥56.2b and earnings per share (EPS) of JP¥115 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.
View our latest analysis for Fuji Kyuko
The consensus price target fell 7.0% to JP¥4,000, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results.
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. We would highlight that Fuji Kyuko's revenue growth is expected to slow, with the forecast 5.8% annualised growth rate until the end of 2027 being well below the historical 10% 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 9.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Fuji Kyuko is also expected to grow slower than other industry participants.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 Kyuko analysts - going out to 2029, and you can see them free on our platform here.
Even so, be aware that Fuji Kyuko is showing 1 warning sign in our investment analysis , you should know about...
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