The GMO Payment Gateway, Inc. (TSE:3769) Interim Results Are Out And Analysts Have Published New Forecasts

Investors in GMO Payment Gateway, Inc. (TSE:3769) had a good week, as its shares rose 2.3% to close at JP¥7,906 following the release of its half-yearly results. GMO Payment Gateway missed revenue estimates by 2.4%, coming in atJP¥18b, although statutory earnings per share (EPS) of JP¥64.35 beat expectations, coming in 4.0% ahead of analyst estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for GMO Payment Gateway

Taking into account the latest results, the current consensus from GMO Payment Gateway's eleven analysts is for revenues of JP¥75.0b in 2024. This would reflect a meaningful 9.0% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 5.4% to JP¥218. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥75.3b and earnings per share (EPS) of JP¥218 in 2024. 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¥11,193. 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 GMO Payment Gateway, with the most bullish analyst valuing it at JP¥14,300 and the most bearish at JP¥9,000 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of GMO Payment Gateway'shistorical trends, as the 19% annualised revenue growth to the end of 2024 is roughly in line with the 18% 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 6.8% per year. So although GMO Payment Gateway 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥11,193, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple GMO Payment Gateway analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for GMO Payment Gateway you should be aware 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.