Gaming stocks, evening of October 28: Capcom shares fall despite earnings growth

Capcom shares fell in Tokyo today, a day after the company reported higher sales and profit for the first half of its fiscal year. Despite the growth, the Resident Evil publisher kept its full-year forecast unchanged.

Forecast holds as quarterly growth slows

Capcom shares (9697, Tokyo Stock Exchange) were down about 11.8% at Wednesday’s midday trading break, according to Reuters. According to gamebiz, keeping the full-year forecast unchanged disappointed the market. Even after the strong first half, Capcom did not raise its sales or profit forecast for the full year.

FISCO’s report published by Minkabu also noted slower operating profit growth: it rose 33.8% year on year in July–September, following annual growth of 66.9% in April–June. The reports point to two sources of disappointment: slowing quarterly growth and an unchanged annual outlook.

First-half operating profit jumps 54.5%

In the six months ended September 30, sales rose 49% year on year to about 120.9 billion yen, according to Capcom’s results. Operating profit rose 54.5% to about 60.8 billion yen.

The company said PRAGMATA had passed 2.7 million units and Onimusha: Way of the Sword had passed 1.7 million. Catalog games, rather than new releases during the period, sold about 32.2 million units combined in the half, up from about 22.9 million a year earlier.

From the bench: Roblox prepares to report

Roblox (RBLX, New York Stock Exchange) operates a platform where users create and play experiences made by others. According to the company’s announcement, it will report third-quarter results after the US market closes on Thursday, October 29. The results have not yet been released.

This column is a journalistic summary only and is not investment advice or a recommendation to buy, sell or hold any security. The writers and the site owner have no personal interest in the companies in this column and hold no shares in them. This information is not a substitute for investment advice that takes into account each person’s data and needs.