- Nintendo revised its full-year operating income forecast to 280 billion yen, lower than the previous target of 360 billion yen and below market expectations of 349.41 billion yen.
- The company anticipates net income for the year to be 270 billion yen, down from the prior forecast of 300 billion yen and below analyst estimates of 310.2 billion yen.
- Predicted net sales for the fiscal year are 1.19 trillion yen, reduced from the earlier projection of 1.28 trillion yen, and below the anticipated 1.32 trillion yen.
- Nintendo adjusted its dividend outlook to 116 yen per share, lowering it from the previous forecast of 129 yen and short of market predictions of 131.18 yen.
- For the nine-month period, Nintendo reported net sales of 956.22 billion yen, which is a 31% decrease year-over-year.
- In the third quarter, the operating income was 126.08 billion yen, representing a 32% decline compared to the same period last year, and below the estimate of 155.63 billion yen.
- Third-quarter net income was 128.53 billion yen, a 6% decrease from the previous year, missing the estimate of 140.59 billion yen.
- Net sales for the third quarter were 432.92 billion yen, down 28% from the same quarter the previous year and below the expected 498.61 billion yen.
- Analyst consensus on the stock includes 21 buy ratings, 7 hold ratings, and 3 sell ratings.
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Nintendo on Smartkarma
Analysts on Smartkarma have differing views on Nintendo‘s performance. Business Breakdowns leans bullish, providing insights on the gaming giant’s credit management efficiency. In contrast, Mark Chadwick‘s bearish outlook highlights Nintendo‘s Q3 revenue dip of 17% year-over-year, with Switch hardware sales down as well. Despite a sequential uptick in hardware sales due to special bundles, Chadwick anticipates a more modest upgrade with the upcoming Switch 2 model. Additionally, Chadwick’s Q2 preview suggests a potential downward revision in full-year guidance amid softer demand for Switch hardware. On the positive side, the Tech Supply Chain Tracker notes Nintendo facing challenges in China’s gaming sector but leans bullish overall, emphasizing growth and resilience driven by subsidiaries amidst industry shifts.
A look at Nintendo Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Nintendo shows a promising long-term outlook. The company scored high in resilience and momentum, indicating its ability to withstand challenges and maintain positive growth trends. With a growth score of 3, Nintendo also shows potential for future expansion in the video game market. However, its value and dividend scores are more moderate, suggesting that investors may need to carefully consider these factors when evaluating the stock.
Nintendo Co., Ltd. is a global company known for developing, manufacturing, and selling home-use video game hardware and software. They also specialize in producing home-game products, including cards. With strong scores in resilience and momentum, Nintendo appears to be well-positioned for continued success in the home entertainment business.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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