Round One Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, Round One Corporation (TSE:4680) just kicked off its latest third-quarter results with some very strong numbers. Round One beat earnings, with revenues hitting JP¥41b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Round One after the latest results.

See our latest analysis for Round One

Following the latest results, Round One's seven analysts are now forecasting revenues of JP¥188.2b in 2026. This would be a meaningful 9.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 15% to JP¥74.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥187.8b and earnings per share (EPS) of JP¥74.10 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of JP¥1,381, showing that the business is executing well and in line with expectations. 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 Round One analyst has a price target of JP¥1,700 per share, while the most pessimistic values it at JP¥870. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Round One's revenue growth is expected to slow, with the forecast 7.3% annualised growth rate until the end of 2026 being well below the historical 18% p.a. growth over the last five years. Compare this to the 158 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.8% per year. Factoring in the forecast slowdown in growth, it looks like Round One is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Round One. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Round One analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Round One that you need to take into consideration.

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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.