[Financial Results Preview] Is there a sense of security about Nintendo's financial results due to heightened interest in new game consoles and the forecast of a complete increase in profit
● $Nintendo(7974.JP$Is5/7 3:30 p.m.Consolidated financial results for the fiscal year ending 2024/3 will be announced.
●According to company forecasts, consolidated sales1.8% increase from the previous fiscal yearNet profit of 1.63 trillion yen1.7% increaseThe forecast is 440 billion yen.
●According to market forecasts, consolidated sales3.8% increase from the previous fiscal yearEarnings per share (EPS) are expected to increase 4.3% to 1,663 billion yen to 387.618 yen.
●Performance up to the 3rd quarter was strong. The new “The Legend of Zelda” and “Super Mario” movies released this season were hits. Sales of the “Nintendo Switch,” which entered its 8th year on sale, also remained steady.
●What is the next generation SwitchExpectations that it will be released within 24 yearsDue to the spread of, etc., the total market value temporarily recovered from over 10 trillion yen since 2007 in '24, but after that, new game consolesIt is expected that it will be released in 25 yearsIt was reported, and stock prices plummeted.The materials for the new game console are likely to be a major factor in future stock price fluctuations.
● According to evaluations by 24 analysts, 45.83% are bullish, 8.33% are slightly bullish, 33.33% are neutral, 4.17% are slightly bearish, and 8.33% are bearish,Overall rating is “slightly bullish”It has become.The average target stock price is 8599.09 yen, which is about 13.5% above the 5/2 closing price of 7575 yen. Microwave ranges are 6100 to 12,000 yen.
●According to company forecasts, consolidated sales1.8% increase from the previous fiscal yearNet profit of 1.63 trillion yen1.7% increaseThe forecast is 440 billion yen.
●According to market forecasts, consolidated sales3.8% increase from the previous fiscal yearEarnings per share (EPS) are expected to increase 4.3% to 1,663 billion yen to 387.618 yen.
●Performance up to the 3rd quarter was strong. The new “The Legend of Zelda” and “Super Mario” movies released this season were hits. Sales of the “Nintendo Switch,” which entered its 8th year on sale, also remained steady.
●What is the next generation SwitchExpectations that it will be released within 24 yearsDue to the spread of, etc., the total market value temporarily recovered from over 10 trillion yen since 2007 in '24, but after that, new game consolesIt is expected that it will be released in 25 yearsIt was reported, and stock prices plummeted.The materials for the new game console are likely to be a major factor in future stock price fluctuations.
● According to evaluations by 24 analysts, 45.83% are bullish, 8.33% are slightly bullish, 33.33% are neutral, 4.17% are slightly bearish, and 8.33% are bearish,Overall rating is “slightly bullish”It has become.The average target stock price is 8599.09 yen, which is about 13.5% above the 5/2 closing price of 7575 yen. Microwave ranges are 6100 to 12,000 yen.
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At the same time as the 3Q announcement, NintendoThe financial results for the fiscal year ending March 24, which had been expected to decline in profit, were reversed and revised to forecast an increase in profitI did it. Performance has been strong, and the hits of the Super Mario movie “The Super Mario Bros. Movie” released in April 23 and the new game software series “The Legend of Zelda: Tears of the Kingdom” released in May of the same year and exchange gains due to depreciation of yen contributed, and the popular title “Super Mario Bros. Wonder,” which was released in October last year, is also doing well. As for the current sales plan for the home video game console “Nintendo Switch,” the hardware is the previous oneFrom 15 million units to 15.5 million unitsPull up, also about softwareIt was set at 185 million, but now it's 190 millionI pulled it up. The day after the 3Q announcement, the stock price temporarily rose 3%. What about NintendoThe overseas sales ratio is as high as 80%, and it is easy to benefit from the depreciation of the yen.Foreign exchange gains at the 3Q cumulative sales stage have risen to 66 billion yen, and will the depreciation of the yen continueExchange rate trends are closely watched。
From strong performance to 1/10The total market value exceeded 10 trillion yen for the first time in about 16 years, on 2/15High price since listingI attached it. However, after that, a new game console was released after the SwitchReports that it will fall behind expectationsStock prices plummeted in response. Until then, most securities analysts had anticipated sales in the second half of '24. Bloomberg reported on February 17 that Nintendo notified multiple game development companies that it would postpone sales to the 25/1 to 3 fiscal year. The Nihon Keizai ShimbunIt will go on sale as early as 25/3It is assumed that it will be a game console with characteristics of both a stationary type and a portable type similar to a switch. Also, the screen uses a large screen that exceeds the switch (6.2 inches for the standard model), and it is said that it is compatible with games with higher definition image quality. While expectations for the new model are growing in the market, the Switch has become a hit with cumulative sales approaching 140 million units, so there are also voices concerned about the reaction.
Nintendo does not have its own factory, and has adopted a “fabless” production system where production of major products such as dedicated game consoles and peripherals is outsourced to external production partners.When Switch went on sale in 17/3, shipments did not keep up with demand and shortages continued, and resale was also widely carried out.There is also a risk of supplier trouble or delays with new game consoles, and it seems that supplier stock prices will move more easily. There is also a high level of interest in what parts and technology will be adopted in the new game console. If we were to release a new compatible game console with precise images,NVIDIA's AI graphics technology “DLSS (Deep Learning Super Sampling)”It has become necessary, and attention is also being paid to whether the same technology will be incorporated. As Nintendo's main supplier, $Hosiden(6804.JP$、 $Minebea Mitsumi(6479.JP$、 $MegaChips(6875.JP$、 $Marubun(7537.JP$、 $Rohm(6963.JP$、 $NVIDIA(NVDA.US$etc., can be mentioned.
Starting with Mario movies, intellectual property (IP) strategies that include movie releases with the aim of increasing points of contact with consumers and content have been successful, and it is expected that these efforts will continue to be prioritized in the future.A live-action film adaptation of “The Legend of Zelda”has also been announced,A new animated Super Mario movie is also scheduled to be released in April '26that's it. Other than movies, the operation of directly managed goods stores and participation in theme parks are also doing well.
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— MooMoo News Kathy
Source: Bloomberg, Nihon Keizai Shimbun, Nintendo website materials, moomoo
Source: Bloomberg, Nihon Keizai Shimbun, Nintendo website materials, moomoo
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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よろぴこ : Analysts are very aggressive.
I stopped buying it because I thought it was one of the stocks to watch out for after settlement due to this kind of pattern.
182948539 : Until the new model is announced, we will deal with it with push buy~
いちご大福大好き : Like the analyst,
Decide that it's time to buy (bargain),
I'm buying mini stocks here and there!