NEXON Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Shareholders will be ecstatic, with their stake up 24% over the past week following NEXON Co., Ltd.'s (TSE:3659) latest half-yearly results. It looks like a credible result overall - although revenues of JP¥273b were in line with what the analysts predicted, NEXON surprised by delivering a statutory profit of JP¥110 per share, a notable 13% above expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, NEXON's 19 analysts currently expect revenues in 2026 to be JP¥509.8b, approximately in line with the last 12 months. Statutory earnings per share are expected to decline 14% to JP¥150 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥505.6b and earnings per share (EPS) of JP¥139 in 2026. So the consensus seems to have become somewhat more optimistic on NEXON's earnings potential following these results.
View our latest analysis for NEXON
There's been no major changes to the consensus price target of JP¥2,862, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 NEXON, with the most bullish analyst valuing it at JP¥3,300 and the most bearish at JP¥2,270 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 revenue is expected to reverse, with a forecast 2.3% annualised decline to the end of 2026. That is a notable change from historical growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - NEXON is expected to lag 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 NEXON's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥2,862, with the latest estimates not enough to have an impact on their price targets.
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 NEXON going out to 2028, and you can see them free on our platform here..
Before you take the next step you should know about the 3 warning signs for NEXON (1 doesn't sit too well with us!) that we have uncovered.
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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.