There's been a notable change in appetite for GMO Payment Gateway, Inc. (TSE:3769) shares in the week since its quarterly report, with the stock down 10% to JP¥9,175. The result was positive overall - although revenues of JP¥24b were in line with what the analysts predicted, GMO Payment Gateway surprised by delivering a statutory profit of JP¥91.38 per share, modestly greater than expected. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, GMO Payment Gateway's twelve analysts are now forecasting revenues of JP¥110.7b in 2027. This would be a huge 21% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 20% to JP¥398. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥110.5b and earnings per share (EPS) of JP¥397 in 2027. 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.
Check out our latest analysis for GMO Payment Gateway
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥10,356. 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. Currently, the most bullish analyst values GMO Payment Gateway at JP¥13,200 per share, while the most bearish prices it at JP¥9,230. 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.
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 2027 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues fall 0.8% per year. So not only is GMO Payment Gateway expected to maintain its revenue growth despite the wider downturn, it's also forecast to grow faster than the industry as a whole.
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 reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that GMO Payment Gateway's revenue is expected to perform better than the wider 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.
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 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign 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.