Results: BANDAI NAMCO Holdings Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

BANDAI NAMCO Holdings Inc. (TSE:7832) just released its latest half-yearly results and things are looking bullish. The company beat forecasts, with revenue of JP¥611b, some 7.1% above estimates, and statutory earnings per share (EPS) coming in at JP¥123, 22% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for BANDAI NAMCO Holdings

Taking into account the latest results, BANDAI NAMCO Holdings' 14 analysts currently expect revenues in 2025 to be JP¥1.15t, approximately in line with the last 12 months. Statutory earnings per share are expected to sink 16% to JP¥167 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.13t and earnings per share (EPS) of JP¥157 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥3,628, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic BANDAI NAMCO Holdings analyst has a price target of JP¥4,600 per share, while the most pessimistic values it at JP¥2,400. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BANDAI NAMCO Holdings' past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 1.9% annualised decline to the end of 2025. That is a notable change from historical growth of 10% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.7% per year. It's pretty clear that BANDAI NAMCO Holdings' revenues are expected to perform substantially worse than the wider industry.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that BANDAI NAMCO Holdings' revenue is expected to 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for BANDAI NAMCO Holdings going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for BANDAI NAMCO Holdings (1 is concerning!) that you need to be mindful of.

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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.