BANDAI NAMCO Holdings Inc. (TSE:7832) last week reported its latest half-yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results overall were respectable, with statutory earnings of JP¥155 per share roughly in line with what the analysts had forecast. Revenues of JP¥728b came in 4.7% ahead of analyst predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, BANDAI NAMCO Holdings' 17 analysts are now forecasting revenues of JP¥1.46t in 2027. This would be a modest 2.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 2.5% to JP¥258. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.44t and earnings per share (EPS) of JP¥248 in 2027. So the consensus seems to have become somewhat more optimistic on BANDAI NAMCO Holdings' earnings potential following these results.
See our latest analysis for BANDAI NAMCO Holdings
The consensus price target rose 8.0% to JP¥6,371, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on BANDAI NAMCO Holdings, with the most bullish analyst valuing it at JP¥7,700 and the most bearish at JP¥4,250 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await BANDAI NAMCO Holdings shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that BANDAI NAMCO Holdings' revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2027 being well below the historical 11% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% annually. Factoring in the forecast slowdown in growth, it looks like BANDAI NAMCO Holdings is forecast to grow at about the same rate as the wider 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 BANDAI NAMCO Holdings following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for BANDAI NAMCO Holdings going out to 2029, and you can see them free on our platform here..
We also provide an overview of the BANDAI NAMCO Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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