Sega Sammy Holdings Inc. Recorded A 19% Miss On Revenue: Analysts Are Revisiting Their Models

Sega Sammy Holdings Inc. (TSE:6460) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It looks like a weak result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of JP¥101b missed by 19%, and statutory earnings per share of JP¥53.39 fell short of forecasts by 8.8%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Sega Sammy Holdings

Taking into account the latest results, the consensus forecast from Sega Sammy Holdings' eleven analysts is for revenues of JP¥481.9b in 2026. This reflects a notable 9.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 22% to JP¥224. Before this earnings report, the analysts had been forecasting revenues of JP¥483.7b and earnings per share (EPS) of JP¥222 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,370. 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. There are some variant perceptions on Sega Sammy Holdings, with the most bullish analyst valuing it at JP¥4,200 and the most bearish at JP¥2,400 per share. 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 Sega Sammy Holdings' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Sega Sammy Holdings'historical trends, as the 7.6% annualised revenue growth to the end of 2026 is roughly in line with the 9.2% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.1% per year. So although Sega Sammy Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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. The consensus price target held steady at JP¥3,370, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Sega Sammy Holdings going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Sega Sammy Holdings that we have uncovered.

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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.