It's been a pretty great week for Fujita Kanko Inc. (TSE:9722) shareholders, with its shares surging 11% to JP¥2,235 in the week since its latest interim results. It looks like a credible result overall - although revenues of JP¥21b were what the analysts expected, Fujita Kanko surprised by delivering a (statutory) profit of JP¥44.53 per share, an impressive 37% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fujita Kanko after the latest results.
Following the latest results, Fujita Kanko's two analysts are now forecasting revenues of JP¥84.9b in 2026. This would be a reasonable 2.5% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥212, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥84.5b and earnings per share (EPS) of JP¥206 in 2026. So the consensus seems to have become somewhat more optimistic on Fujita Kanko's earnings potential following these results.
Check out our latest analysis for Fujita Kanko
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 17% to JP¥2,340.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Fujita Kanko's revenue growth is expected to slow, with the forecast 5.1% annualised growth rate until the end of 2026 being well below the historical 23% 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 9.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Fujita Kanko.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Fujita Kanko following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 analyst estimates for Fujita Kanko going out as far as 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Fujita Kanko (1 can't be ignored!) that we have uncovered.
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