Analyst Estimates: Here's What Brokers Think Of Capcom Co., Ltd. (TSE:9697) After Its Yearly Report

Capcom Co., Ltd. (TSE:9697) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to JP¥3,960 in the week after its latest annual results. It was a credible result overall, with revenues of JP¥170b and statutory earnings per share of JP¥116 both in line with analyst estimates, showing that Capcom is executing in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Capcom's 14 analysts are now forecasting revenues of JP¥188.2b in 2026. This would be a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 15% to JP¥133. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥186.7b and earnings per share (EPS) of JP¥134 in 2026. 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 Capcom

The analysts reconfirmed their price target of JP¥4,254, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Capcom analyst has a price target of JP¥4,600 per share, while the most pessimistic values it at JP¥3,700. This is a very narrow spread of estimates, implying either that Capcom is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Capcom's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Capcom'shistorical trends, as the 11% annualised revenue growth to the end of 2026 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. It's clear that while Capcom's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. 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.

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 Capcom going out to 2028, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.