Nintendo (NTDOY) provides the same guidance two years in a row

When it comes to financial guidance, Nintendo is a company that nearly always sandbags it. That is, the company puts up modest guidance and somewhat undervalues its usual performance and then it generally blows that guidance out of the water. This has been the case for Nintendo for quite some time even through some of its best recent fiscal years. 2023 looks to be no different and, if anything, Nintendo seems to have gotten even more careless about it because 2023’s fiscal year guidance nearly the exact same as that of its 2022 guidance.

This could be observed on Page 2 not only in Nintendo’s 2022 fiscal year end earnings results which posted on May 10, 2022, but also in its 2021 fiscal year end earnings results. Funny enough, when you look at the forecast in both 2022 and 2023 guidance, they are almost the exact same. Net sales are set at 1.6 trillion yen, operating profit is at 500 billion yen, ordinary profit is at 480 billion yen, and profit attributable to owners of parent is 340 billion yen. The only difference is profit-per-share which was 2,854.20 yen per share in fiscal 2022 and is set at 289.80 yen in fiscal 2023.

Putting Nintendo (NTDOY)'s 2022 and 2023 fiscal year guidance side by side shows funnily enough that it's pretty much identical, save for profit-per-share numbers.

While this might seem incredibly odd, it’s also, for the most part, normal for Nintendo. The company has done well against its guidance in previous years where it feels as though the company always undervalues its guidance and then outperforms it, whether handily or by a hair. The profit-per-share being different is affected by a number of factors, but the biggest is definitely the 10-for-1 stock split and share buyback program Nintendo just announced in its 2022 fiscal year end reporting. Not only does the buyback affect stock value, but the 10-for-1 split splinters the stock value as well.

Either way, Nintendo’s guidance is looking hilariously modest as usual. With this in mind, it will be interesting to see how the company performs against its guidance throughout the coming year. Stay tuned for more Nintendo earnings news as well as further company quarterly earnings reporting right here at Shacknews.