- Operating Income: 1Q operating income was 54.51 billion yen, down 71% year-on-year, missing the estimate of 93.74 billion yen.
- Net Income: Net income for the quarter was 80.95 billion yen, down 55% year-on-year, below the estimate of 83.52 billion yen.
- Net Sales: Total net sales reached 246.64 billion yen, down 47% year-on-year, falling short of the estimate of 314.21 billion yen.
- 2025 Forecast:
- Operating Income: Expected to be 400.00 billion yen (estimate is 426.14 billion yen).
- Net Income: Expected to be 300.00 billion yen (estimate is 353.61 billion yen).
- Net Sales: Expected to be 1.35 trillion yen (estimate is 1.43 trillion yen).
- Dividend: Expected dividend is 129.00 yen per share (estimate is 148.11 yen per share).
- Analyst Ratings: There are 18 buy ratings, 10 hold ratings, and 3 sell ratings.
Nintendo on Smartkarma
Analyst coverage of Nintendo on Smartkarma by Mark Chadwick includes two insightful reports. In the first report titled “Nintendo (7974) | Negative Surprise….Not Really,” Chadwick discusses the initial market reaction being negative due to operating profit misses in FY3/24 and FY3/25. Despite this, he sees an opportunity to buy into the stock for a cyclical upturn in FY3/26. This report provides a bearish lean but suggests a positive outlook for the future.
In the second report “Nintendo (7974) | Delayed…Or Just Fashionably Late,” Chadwick addresses rumors of a Switch 2 delay causing a share price drop, but maintains a bullish sentiment with a potential 25% upside. He dismisses concerns of a one-quarter delay affecting long-term sell-through or valuation. Chadwick highlights Nintendo‘s advantage over Sony’s PS5 troubles, indicating a bullish stance on the stock moving forward.
A look at Nintendo Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
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 seems to have a solid long-term outlook. With a strong resilience score of 5, the company is well-positioned to weather market fluctuations and challenges. This indicates that Nintendo has the ability to adapt and thrive in changing conditions, providing investors with a sense of stability.
Additionally, Nintendo scores well in the dividend and momentum categories with scores of 4, suggesting a good payout to shareholders and positive market momentum. While the growth score is somewhat lower at 3, indicating moderate growth prospects, the overall scores paint a picture of a company with a steady performance and promising future in the gaming industry.
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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