Capcom Co., Ltd. Just Recorded A 11% EPS Beat: Here's What Analysts Are Forecasting Next

Capcom Co., Ltd. (TSE:9697) shareholders are probably feeling a little disappointed, since its shares fell 5.8% to JP¥4,034 in the week after its latest half-yearly results. It looks like a credible result overall - although revenues of JP¥36b were in line with what the analysts predicted, Capcom surprised by delivering a statutory profit of JP¥24.57 per share, a notable 11% above expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the consensus from Capcom's 17 analysts is for revenues of JP¥187.9b in 2026, which would reflect a measurable 3.3% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to sink 11% to JP¥130 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥188.4b and earnings per share (EPS) of JP¥130 in 2026. 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

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥4,660. 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. There are some variant perceptions on Capcom, with the most bullish analyst valuing it at JP¥5,300 and the most bearish at JP¥3,900 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 would highlight that revenue is expected to reverse, with a forecast 6.6% annualised decline to the end of 2026. That is a notable change from historical growth of 13% 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 9.8% annually for the foreseeable future. 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Capcom. Long-term earnings power is much more important than next year's profits. We have forecasts 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.