CyberAgent, Inc. Just Beat EPS By 22%: Here's What Analysts Think Will Happen Next

A week ago, CyberAgent, Inc. (TSE:4751) came out with a strong set of half-yearly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of JP¥408b, some 3.2% above estimates, and statutory earnings per share (EPS) coming in at JP¥20.41, 22% ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for CyberAgent

Following the latest results, CyberAgent's 17 analysts are now forecasting revenues of JP¥797.1b in 2024. This would be a satisfactory 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 19% to JP¥28.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥795.3b and earnings per share (EPS) of JP¥27.11 in 2024. So the consensus seems to have become somewhat more optimistic on CyberAgent's earnings potential following these results.

The consensus price target was unchanged at JP¥1,149, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values CyberAgent at JP¥1,370 per share, while the most bearish prices it at JP¥880. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 CyberAgent's revenue growth is expected to slow, with the forecast 8.5% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.0% annually. Even after the forecast slowdown in growth, it seems obvious that CyberAgent is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CyberAgent's earnings potential next year. 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¥1,149, 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 CyberAgent. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple CyberAgent analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for CyberAgent that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.