Earnings Beat: Here's What Konami Group Corporation (TSE:9766) Analysts Are Forecasting For This Year
A week ago, Konami Group Corporation (TSE:9766) came out with a strong set of half-yearly numbers that could potentially lead to a re-rate of the stock. Statutory earnings performance was extremely strong, with revenue of JP¥308b beating expectations by 24% and earnings per share (EPS) of JP¥344, an impressive 29%ahead of expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, Konami Group's 17 analysts currently expect revenues in 2027 to be JP¥583.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 3.1% to JP¥1,010. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥561.9b and earnings per share (EPS) of JP¥957 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
See our latest analysis for Konami Group
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥28,227, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Konami Group analyst has a price target of JP¥33,600 per share, while the most pessimistic values it at JP¥22,500. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 2.2% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that Konami Group is also expected to grow slower than other industry participants.
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 upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at JP¥28,227, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Konami Group going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Konami Group that you need to take into consideration.
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