Shareholders might have noticed that Capcom Co., Ltd. (TSE:9697) filed its interim result this time last week. The early response was not positive, with shares down 8.0% to JP¥3,957 in the past week. Revenue was JP¥121b beating expectations by a remarkable 24%. Statutory earnings per share (EPS) fell 14% short of estimates, at JP¥33.28 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus, from the 19 analysts covering Capcom, is for revenues of JP¥219.9b in 2027. This implies a small 6.4% reduction in Capcom's revenue over the past 12 months. Statutory earnings per share are forecast to decrease 9.1% to JP¥152 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥221.2b and earnings per share (EPS) of JP¥153 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 Capcom
There were no changes to revenue or earnings estimates or the price target of JP¥4,766, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Capcom at JP¥5,300 per share, while the most bearish prices it at JP¥3,900. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Capcom is an easy business to forecast or the the analysts are all using similar assumptions.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 12% by the end of 2027. This indicates a significant reduction from annual growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.4% per year. It's pretty clear that Capcom's revenues are expected to perform substantially worse than the wider industry.
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 Capcom's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥4,766, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Capcom analysts - going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Capcom .
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