Nintendo's First-Quarter Results
Nintendo is set to release its first-quarter results on Thursday, and here are the key details you need to keep in mind:
Net Profit Forecast
Analysts predict that Nintendo will report a 2.0% increase in net profit, reaching 121.37 billion yen ($846.7 million) for the quarter ending on June 30. This is compared to last year's net profit of Y118.98 billion.
Revenue Forecast
The first-quarter revenue is estimated to have grown by 31% compared to the previous year, amounting to Y402.02 billion.
Factors to Monitor
Profitability
Investors are keeping a close eye on Nintendo's operating-profit margin, which declined from 35.0% to 31.5% in the fiscal year ended in March. Despite a decrease in revenue, there was an increase in selling, general, and administrative expenses. Given the rising operational costs faced by businesses worldwide, any signs of improved profitability will be significant.
Outlook
Back in May, Nintendo projected that their revenue for the fiscal year ending March 2024 would decrease by 9.5% to Y1.450 trillion, while net profit would drop by 21% to Y340.00 billion. Investors are particularly interested in any updates or alterations to these projections.
Console Sales
For the fiscal year ended in March, Nintendo experienced a 22% decline in Switch console sales, with a total of 18.0 million units sold. In May, they forecasted a further drop to 15.0 million units for this fiscal year. Investors will closely monitor any indications of a rebound in console sales.
Overall, Nintendo's first-quarter results will provide insights into their net profit, revenue, and other vital aspects of their performance. Investors and gaming enthusiasts alike eagerly await the findings.
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