Results: Konami Group Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts
Konami Group Corporation (TSE:9766) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 6.5% to hit JP¥130b. Konami Group reported statutory earnings per share (EPS) JP¥240, which was a notable 14% above what the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Konami Group's 18 analysts is for revenues of JP¥552.9b in 2027. This would reflect an okay 5.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 9.9% to JP¥914. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥548.2b and earnings per share (EPS) of JP¥887 in 2027. So the consensus seems to have become somewhat more optimistic on Konami Group's earnings potential following these results.
View our latest analysis for Konami Group
There's been no major changes to the consensus price target of JP¥26,049, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Konami Group analyst has a price target of JP¥30,000 per share, while the most pessimistic values it at JP¥21,000. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Konami Group shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Konami Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Konami Group's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 6.8% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.9% per year. So it's pretty clear that, while Konami Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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 Konami Group following these results. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Konami Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Konami Group analysts - going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Konami Group .
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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.