- Nintendo‘s full-year operating income forecast fell short of estimates, only reaching 400.00 billion yen as opposed to the estimated 478.34 billion yen.
- The company’s expected net income also missed forecasts, coming in at 300.00 billion yen instead of the projected 383.35 billion yen.
- Net sales were projected at 1.63 trillion yen but Nintendo only sees it reaching 1.35 trillion yen.
- The expected dividend of 162.02 yen was also not met, with Nintendo only foreseeing a 129.00 yen dividend.
- In terms of fourth quarter results, the operating income was 64.53 billion yen, down by 31% year over year (y/y), and also lagged behind the estimate of 74.71 billion yen.
- On the brighter side, the net income did outperform estimates of 61.56 billion yen by reaching 82.56 billion yen, even though this marked a 4.6% decrease y/y.
- Quarterly net sales barely missed their mark of 277.13 billion yen by netting 277.07 billion yen, which is however a decrease of 9.6% in comparison to the previous year.
- For Nintendo‘s future perspectives, 17 buys, 11 holds and 3 sells have been recorded.
Nintendo on Smartkarma
Analyst coverage on Nintendo by Mark Chadwick on Smartkarma shows differing sentiments on the company’s future. In the report titled “Nintendo (7974) | Delayed…Or Just Fashionably Late,” Chadwick expresses a bullish sentiment despite rumors of a Switch 2 delay causing a 6% drop in Nintendo‘s share price. The analyst believes the long-term outlook for Nintendo remains strong, citing a potential 25% upside due to the company’s favorable positioning in the market with Sony’s PS5 facing challenges.
In contrast, Chadwick’s report “Nintendo (7974) | Stock Performance Ahead ‘Switch 2’ Speculation” leans bearish as Nintendo‘s Q2 results fell short of expectations, leading to a conservative full-year profit outlook. The upcoming release of “Switch 2” raises uncertainties about the company’s future success. Chadwick considers Nintendo‘s current valuation as fair and does not anticipate a significant breakout until the market can assess the impact of the new console.
A look at Nintendo Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| 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
According to Smartkarma’s Smart Scores, Nintendo is showcasing a promising long-term outlook. With a strong score of 4 in Dividend and a resilient score of 5, the company appears well-positioned to weather market uncertainties and potentially offer stable returns to investors. Additionally, its Growth score of 3 hints at potential opportunities for expansion and innovation in the future, while its Momentum score of 3 suggests a steady pace in market performance. Although its Value score is at 2, indicating some room for improvement in terms of valuation, Nintendo‘s overall outlook seems positive, bolstered by its core focus on developing, manufacturing, and selling home-use video game hardware and software.
As a global player in the home entertainment business, Nintendo Co., Ltd. is known for its production of home-game products, including cards. The combination of its solid Dividend, Resilience, Growth, and Momentum scores suggests a balanced approach towards long-term sustainability and growth. Investors might find Nintendo an intriguing prospect due to its established presence in the gaming industry and its continued emphasis on innovation and creative offerings in the market.
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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