Konami Group Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, Konami Group Corporation (TSE:9766) just kicked off its latest full-year results with some very strong numbers. The company beat expectations with revenues of JP¥360b arriving 3.2% ahead of forecasts. Statutory earnings per share (EPS) were JP¥437, 7.6% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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

Taking into account the latest results, the consensus forecast from Konami Group's 14 analysts is for revenues of JP¥380.0b in 2025. This reflects an okay 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.4% to JP¥469. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥371.1b and earnings per share (EPS) of JP¥441 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of JP¥10,883, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Konami Group analyst has a price target of JP¥12,000 per share, while the most pessimistic values it at JP¥8,960. This is a very narrow spread of estimates, implying either that Konami Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.5% growth on an annualised basis. That is in line with its 6.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. So although Konami Group is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 Konami Group's earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Konami Group will grow in line with the overall 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.

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 Konami Group going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Konami Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.