Koei Tecmo Holdings Co., Ltd. Just Beat EPS By 19%: Here's What Analysts Think Will Happen Next

Koei Tecmo Holdings Co., Ltd. (TSE:3635) defied analyst predictions to release its full-year results, which were ahead of market expectations. Koei Tecmo Holdings beat earnings, with revenues hitting JP¥83b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 19%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Koei Tecmo Holdings' six analysts is for revenues of JP¥90.1b in 2026. This reflects a notable 8.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to sink 11% to JP¥106 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥85.3b and earnings per share (EPS) of JP¥105 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

Check out our latest analysis for Koei Tecmo Holdings

The analysts increased their price target 8.0% to JP¥2,133, perhaps signalling that higher revenues are a strong leading indicator for Koei Tecmo Holdings's valuation. 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. There are some variant perceptions on Koei Tecmo Holdings, with the most bullish analyst valuing it at JP¥2,400 and the most bearish at JP¥1,350 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 8.4% growth on an annualised basis. That is in line with its 10% 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 12% per year. So although Koei Tecmo Holdings is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Koei Tecmo Holdings going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Koei Tecmo Holdings 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.