Capcom Co., Ltd. Just Recorded A 31% EPS Beat: Here's What Analysts Are Forecasting Next
Capcom Co., Ltd. (TSE:9697) investors will be delighted, with the company turning in some strong numbers with its latest results. Capcom delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting JP¥70b-19% above indicated-andJP¥69.71-31% above forecasts- respectively 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.
Following last week's earnings report, Capcom's 17 analysts are forecasting 2027 revenues to be JP¥219.7b, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 5.1% to JP¥151 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥216.2b and earnings per share (EPS) of JP¥148 in 2027. 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.
See our latest analysis for Capcom
There were no changes to revenue or earnings estimates or the price target of JP¥4,309, suggesting that the company has met expectations in its recent result. 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¥4,780 per share, while the most pessimistic values it at JP¥3,500. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 0.3% annualised decline to the end of 2027. That is a notable change from historical growth of 14% 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 4.0% 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. 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¥4,309, 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. At Simply Wall St, we have a full range of analyst estimates for Capcom going out to 2029, and you can see them free on our platform here..
Even so, be aware that Capcom is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...
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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.