Koei Tecmo Holdings significantly raised its first-half earnings forecast, exceeding market expectations, and its share price rebounded sharply. The company raised its operating profit forecast from ¥7.0 billion to ¥11.5 billion and its ordinary profit forecast from ¥12.0 billion to ¥25.0 billion, while leaving its full-year forecast unchanged.
Koei Tecmo Holdings announced an upward revision to its first-half earnings forecast the previous day, prompting a sharp rebound in the stock market. Stronger-than-expected sales of major titles and back-catalogue products were cited as factors.
According to the announcement, operating profit was raised from the previous forecast of ¥7 billion to ¥11.5 billion, and is expected to increase significantly year on year. Ordinary profit was also revised from ¥12 billion to ¥25 billion, potentially aided by an improvement in non-operating income and expenses.
Although the full-year earnings forecast was left unchanged, the market is expected to continue focusing on the scope for further upward revisions and future earnings trends. Continued sales of back-catalogue products and contributions from new titles could affect the market as upside factors.
The share price has rebounded sharply, and further movement is possible depending on analysts' views and future updates. The market is focused on future disclosures and additional information.