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Nintendo (NTDOY) increases FY 2024 forecast and ups dividend

As Nintendo's fiscal year's most important quarter wraps up, things seem to be shaping up better than the company originally thought. Check out Nintendo's latest earnings results.

Asif Khan

February 6, 2024 1:00 AM

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Nintendo's out with its Q3 FY 2024 earnings release, and things appear to be going better than the company expected when it last provided an updated forecast in November 2023. The Big N is increasing its sales forecast by 3.2% and bumping up the expected annual dividend payout by 8 yen.

Nintendo may have set some low expectations when it provided its initial FY 2024 forecast, but trends in the Yen foreign exchange rate alongside the undeniable force of the Mario Movie Effect have things looking better than the company projected in November 2023.

Some highlights from this fiscal year at Nintendo are certainly the releases of The Legend of Zelda: Tears of the Kingdom, and Super Mario Bros. Wonder, but other much older titles like Mario Kart 8 Deluxe have even seen a bump in sales. Nintendo noted in the earnings release that "the April release of The Super Mario Bros. Movie positively impacted sales of Mario related titles, such as Mario Kart 8 Deluxe."

The company now expects to sell 15.5 million Nintendo Switch console units in its seventh year of existence, and software continues to sell. While Nintendo originally projected a down year, it appears that sales will show modest growth this late in a console cycle. Some might say that is a classic case of under-promise and over-deliver by the company, but long-term shareholders and analysts have come to expect a level of caution from the executive team when forecasting for the full year.

Nintendo shareholders can now expect a slighty better dividend payout than was projected in November 2023 when the company increased the forecast by 23%. This is the second time in the fiscal year that NIntendo has increased the expected payout.

While Nintendo did modify the exchange rate assumption from 150 yen to 155 yen per euro, the assumed exchange rate for the U.S. dollar remained unchanged at 140 yen per U.S. dollar. The current dollar yen exchange rate sits at 148.58 yen to the dollar, so there may be even more currency tailwinds for Nintendo next quarter. 

Keep it locked here at Shacknews for all the latest financial video game and technology company earnings results 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.

Full Disclosure:

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

CEO/EIC/EIEIO

Asif Khan is the CEO, EIC, and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.