Nintendo is out with its Q1 2024 earnings results, and the company has not raised its full year forecast despite 50% revenue growth and 82% in operating profit.
Other interesting signs of growth in the results came from the Mobile and IP related division, which saw sales rocket up 190% year-on-year on the back of The Super Mario Bros. Movie. Nintendo even said it saw increased interest in Switch hardware and Mario games based on the success of the film.
Nintendo also left its foreign exchange rate assumptions at 130 yen/dollar and 135 yen/euro, which is noticeably below the current rates of 143 yen/dollar and 156 yen/euro. With over 80% of sales coming from the North America and Europe, Nintendo's financial forecast could end up being too conservative if the exchange rates stay where they are throughout FY 2024.
Digital sales were another highlight in the quarter, up 35.9% from Q1 2023. Playing Cards revenue grew 147% in the quarter. Everything looks so darn great for Nintendo, having released a smash-hit best-selling game in Zelda: Tears of the Kingdom while hitting a grand slam with The Super Mario Bros. Movie. Yet the financial forecast remains unchanged.
Only time will tell if Nintendo is sandbagging its FY 2024 guidance by underpromising and overdelivering or if the company's conservative forecast will prove to be true. We will be there at god knows what time in the morning to bring you the latest Nintendo financial news.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.
At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:
Long Nintendo via NTDOY shares
Asif Khan posted a new article, Nintendo (NTDOY) leaves FY 2024 guidance unchanged despite 50% revenue growth in Q1
Seems smart, no? It was driven by a major game release and a movie. Neither of which will produce anywhere near the level they did last quarter going forward.
Seems like it's "because of" rather than "despite," but there's a reason I'm not in corporate finance
Really shows how a Japanese company actually care about long term business health instead of maximising every quarter
What’s in it for them for sandbagging their numbers? Ability to acquire shares at a lower price?