CyberAgent, Inc. (TSE:4751) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year
It's been a mediocre week for CyberAgent, Inc. (TSE:4751) shareholders, with the stock dropping 15% to JP¥1,249 in the week since its latest quarterly results. It was a pretty mixed result, with revenues beating expectations to hit JP¥231b. Statutory earnings fell 2.8% short of analyst forecasts, reaching JP¥17.15 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from CyberAgent's 18 analysts is for revenues of JP¥987.8b in 2027. This reflects a satisfactory 3.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.3% to JP¥93.09. In the lead-up to this report, the analysts had been modelling revenues of JP¥980.2b and earnings per share (EPS) of JP¥92.89 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for CyberAgent
There were no changes to revenue or earnings estimates or the price target of JP¥1,866, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on CyberAgent, with the most bullish analyst valuing it at JP¥2,200 and the most bearish at JP¥1,500 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that CyberAgent's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 3.1% growth on an annualised basis. This is compared to a historical growth rate of 7.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than CyberAgent.
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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CyberAgent's revenue is expected to perform worse 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 forecasts for CyberAgent going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with CyberAgent , and understanding this should be part of your investment process.
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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.