Fujimi Incorporated (TSE:5384) First-Quarter Results: Here's What Analysts Are Forecasting For This Year
Investors in Fujimi Incorporated (TSE:5384) had a good week, as its shares rose 2.5% to close at JP¥3,915 following the release of its quarterly results. Results overall were respectable, with statutory earnings of JP¥122 per share roughly in line with what the analysts had forecast. Revenues of JP¥20b came in 4.2% ahead of analyst predictions. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Fujimi's six analysts are now forecasting revenues of JP¥78.7b in 2027. This would be a notable 8.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 14% to JP¥162. In the lead-up to this report, the analysts had been modelling revenues of JP¥78.1b and earnings per share (EPS) of JP¥159 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 Fujimi
There's been no major changes to the consensus price target of JP¥4,728, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Fujimi analyst has a price target of JP¥5,500 per share, while the most pessimistic values it at JP¥3,200. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fujimi's past performance and to peers in the same industry. The analysts are definitely expecting Fujimi's growth to accelerate, with the forecast 11% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Fujimi is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fujimi'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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 Fujimi analysts - going out to 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Fujimi (of which 1 is significant!) you should know about.
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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.