Results: BANDAI NAMCO Holdings Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

As you might know, BANDAI NAMCO Holdings Inc. (TSE:7832) just kicked off its latest full-year results with some very strong numbers. BANDAI NAMCO Holdings beat earnings, with revenues hitting JP¥1.1t, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 19%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for BANDAI NAMCO Holdings

Taking into account the latest results, the most recent consensus for BANDAI NAMCO Holdings from 16 analysts is for revenues of JP¥1.09t in 2025. If met, it would imply a modest 3.9% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 5.1% to JP¥146 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥1.08t and earnings per share (EPS) of JP¥151 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥3,351, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. There are some variant perceptions on BANDAI NAMCO Holdings, with the most bullish analyst valuing it at JP¥3,970 and the most bearish at JP¥2,280 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that BANDAI NAMCO Holdings' revenue growth is expected to slow, with the forecast 3.9% annualised growth rate until the end of 2025 being well below the historical 9.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that BANDAI NAMCO Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for BANDAI NAMCO Holdings. 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. The consensus price target held steady at JP¥3,351, 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 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 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.