Stock Analysis

Konami Group Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

TSE:9766
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Konami Group Corporation (TSE:9766) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 6.6% to hit JP¥90b. Konami Group reported statutory earnings per share (EPS) JP¥141, which was a notable 16% above what the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Konami Group

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TSE:9766 Earnings and Revenue Growth August 5th 2024

Taking into account the latest results, the consensus forecast from Konami Group's 15 analysts is for revenues of JP¥399.0b in 2025. This reflects a modest 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 4.3% to JP¥500. In the lead-up to this report, the analysts had been modelling revenues of JP¥392.1b and earnings per share (EPS) of JP¥484 in 2025. So the consensus seems to have become somewhat more optimistic on Konami Group's earnings potential following these results.

There's been no major changes to the consensus price target of JP¥12,859, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Konami Group, with the most bullish analyst valuing it at JP¥15,470 and the most bearish at JP¥11,200 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Konami Group's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.6% growth on an annualised basis. That is in line with its 7.1% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.5% annually. So it's pretty clear that Konami Group is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Konami Group following these results. 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¥12,859, 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 forecasts for Konami Group going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Valuation is complex, but we're here to simplify it.

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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.