The BANDAI NAMCO Holdings Inc. (TSE:7832) Yearly Results Are Out And Analysts Have Published New Forecasts

BANDAI NAMCO Holdings Inc. (TSE:7832) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to JP¥4,800 in the week after its latest full-year results. It looks like the results were a bit of a negative overall. While revenues of JP¥1.2t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.7% to hit JP¥198 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, BANDAI NAMCO Holdings' 15 analysts currently expect revenues in 2026 to be JP¥1.26t, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 9.2% to JP¥179 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥1.26t and earnings per share (EPS) of JP¥197 in 2026. 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.

View our latest analysis for BANDAI NAMCO Holdings

The consensus price target held steady at JP¥5,021, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic BANDAI NAMCO Holdings analyst has a price target of JP¥6,060 per share, while the most pessimistic values it at JP¥2,850. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's pretty clear that there is an expectation that BANDAI NAMCO Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 12% 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 4.4% per year. 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥5,021, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on BANDAI NAMCO Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for BANDAI NAMCO Holdings going out to 2028, 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.