Nintendo just released Q2 FY 2024 earnings results, and the company finally increased its financial forecast.
Here's a link to the Notice of Full-Year Financial Forecast Modifications.
We have modified the financial forecast for the fiscal year ending March 2024,originally published on May 9, 2023.
- We have revised our exchange rate assumptions in consideration of recent exchange rate fluctuations and other economic conditions and reflected the sales results of the first half of this fiscal year in our full-year forecast.
- Our revised outlook is 1,580.0 billion yen in net sales, 500.0 billion yen in operating profit, 600.0 billion yen in ordinary profit, and 420.0 billion yen in profit attributable to owners of parent.
- The assumed exchange rates have been changed from 130 yen to 140 yen per U.S. dollar and 135 yen to 150 yen per euro.
- The annual dividend forecast has been revised from 147 yen to 181 yen per share as a result of the modification of the financial forecast.
- For Nintendo Switch software, we increased our forecast by 5.00 million units to 185.00 million units.
Nintendo increased the forecast for Net Sales by 9 percent, Operating profit by 11.1 percent, Ordinary profit by 25 percent, and Net profit by 23.5 percent. The company also increased the dividend forecast by 23 percent. The forecast for Switch hardware sales remained unchanged, but the company now expects to sell 2.8% more software units by the end of FY 2024. Nintendo did have an opportunity to factor in the Mario Movie effect back in August when the company reported Q1 2024 results, but there is a chance that the yen's persistent weakness against the dollar and euro has also become too hard to ignore. People also keep buying Mario Kart 8 Deluxe.
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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) increases FY 2024 financial forecast
Looked like I increased my stake in the company at just the right time.
Me too. Been buying the dips. Rumors about the switch2 all look good. They set aside a big chunk of change for online investment but been mum on what that actually entails. Plus all the other non console/software revenue growth, plus I love the company.
To be honest Nintendo is doing everything right and really does not need to worry about an "online investment". Don't get me wrong that will help but what they really have to focus on is a better hardware internals(more system memory, better GPU and CPU for a long term base for their new console) in short a way more powerful Switch and keep everything else as is. Nintendo's current formula is perfect and they already focus on video games and make sure they are awesome, fun and are also high quality! If they took that chunk of change and rather invested it into the hardware(more so) it be a much better investment in my opinion.
I honestly think the Switch 2 will be mega massive and the stock is going to go bananas once all that info drops officially!!!!!!
Those that have stock in N on Switch 2's official release day will be going https://www.youtube.com/watch?v=z-BkrwO_Dck on loop :)
Having said that it sort of makes sense that they will upgraded their online stuff it was pretty basic and things have progressed since launch. It's important to note that they have already proved it is not important to have a strong online strategy nor is it necessary to focus on that like MS or others.
The numbers don't lie, an awesome console, physical media(plus optional digital), and amazing video games at the end of the day is all anyone really wants. I think it is so amazing that you actually own a Switch game if you buy physical like I do that is sort of a rarity in the others future visions and I hope N doesn't change that going forward.
In short it will be exciting times ahead for Nintendo and sky is the limit, if the Switch 2 hardware plus strategy pans out as expected it is going to be amazing!!!!!!!!!!!
My main fear is that Nintendo does no get influenced by others and drastically change what they have been doing up till now.