Round One Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Round One Corporation (TSE:4680) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results overall were not great, with earnings of JP¥12.81 per share falling drastically short of analyst expectations. Meanwhile revenues hit JP¥51b and were slightly better than forecasts. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the six analysts covering Round One are now predicting revenues of JP¥214.1b in 2027. If met, this would reflect a notable 8.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 14% to JP¥72.12. In the lead-up to this report, the analysts had been modelling revenues of JP¥214.0b and earnings per share (EPS) of JP¥73.10 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.
See our latest analysis for Round One
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,493. 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. Currently, the most bullish analyst values Round One at JP¥1,520 per share, while the most bearish prices it at JP¥1,450. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Round One's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2027 being well below the historical 16% p.a. growth over the last five years. Compare this to the 162 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 9.2% per year. Factoring in the forecast slowdown in growth, it looks like Round One is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥1,493, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Round One. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Round One analysts - going out to 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Round One you should know about.
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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.