Capcom Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

It's been a good week for Capcom Co., Ltd. (TSE:9697) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.4% to JP¥3,557. It was not a great result overall. While revenues of JP¥32b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 20% to hit JP¥18.63 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Capcom after the latest results.

Check out our latest analysis for Capcom

Following the latest results, Capcom's 14 analysts are now forecasting revenues of JP¥186.5b in 2026. This would be a sizeable 38% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 82% to JP¥139. In the lead-up to this report, the analysts had been modelling revenues of JP¥185.1b and earnings per share (EPS) of JP¥134 in 2026. So the consensus seems to have become somewhat more optimistic on Capcom's earnings potential following these results.

There's been no major changes to the consensus price target of JP¥3,794, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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¥4,230 per share, while the most bearish prices it at JP¥2,900. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Capcom shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Capcom's growth to accelerate, with the forecast 29% annualised growth to the end of 2026 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Capcom to grow faster than 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 Capcom's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Capcom going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Capcom's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.