Nintendo Downgrades Annual Forecast Amid Declining Sales

Nintendo has revised down its annual guidance, projecting lower sales and profits. The company expects net profit of 270 billion yen, impacting stock performance.

Date: 04-02-2025

AI Rating: 4

Overview: Nintendo Co. Ltd. has made significant revisions to its annual guidance, which could impact investor sentiment and stock prices. Here are the key points affecting the financial metrics:

Earnings Per Share (EPS): Nintendo's projected EPS has decreased from 257.68 yen to 231.91 yen. This reduction indicates a weaker performance expectation, which could negatively affect investor confidence.

Net Income: The company expects its net profit to fall to 270 billion yen from the previously stated 300 billion yen. This downward revision of net income contributes to a less favorable outlook for the company.

Revenue Growth: Revenue for the full year is now anticipated to be 1.190 trillion yen, down from 1.280 trillion yen. The significant decline in expected revenue growth reflects underlying challenges in sales performance.

Profit Margins: Although profit margins are not explicitly mentioned, the decrease in net profit paired with falling revenues suggests potential strain on profitability.

Dividend Projection: The company’s annual dividend is now projected at 116 yen per share, reduced from the earlier forecast of 129 yen per share. This reduction may signal to investors that the company is tightening its financials.

Sales Performance: Nintendo's sales of the Switch Console have been cut down by 12 percent to 11 million units, highlighting a declining trend in product demand. Moreover, the revenue for the past nine months fell by 31.4 percent, indicating that the company is facing substantial pressure in the market.

Stocks: NTDOY