BANDAI NAMCO Holdings Inc. Just Recorded A 61% EPS Beat: Here's What Analysts Are Forecasting Next
BANDAI NAMCO Holdings Inc. (TSE:7832) investors will be delighted, with the company turning in some strong numbers with its latest results. BANDAI NAMCO Holdings delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting JP¥328b-12% above indicated-andJP¥79.73-61% above forecasts- respectively 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following last week's earnings report, BANDAI NAMCO Holdings' 17 analysts are forecasting 2027 revenues to be JP¥1.40t, approximately in line with the last 12 months. Statutory earnings per share are forecast to decrease 4.1% to JP¥230 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.38t and earnings per share (EPS) of JP¥217 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 BANDAI NAMCO Holdings
The consensus price target was unchanged at JP¥5,038, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 BANDAI NAMCO Holdings analyst has a price target of JP¥6,390 per share, while the most pessimistic values it at JP¥3,610. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that BANDAI NAMCO Holdings' revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2027 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than BANDAI NAMCO Holdings.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around BANDAI NAMCO Holdings' earnings potential next year. 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 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple BANDAI NAMCO Holdings analysts - going out to 2029, and you can see them free on our platform here.
You can also see our analysis of BANDAI NAMCO Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.