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Nintendo (NTDOY) increases FY 2024 financial forecast

Nintendo's management team has finally come to grips with the fact that the Mario movie was pretty great.

Asif Khan

November 6, 2023 11:40 PM

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Nintendo just released Q2 FY 2024 earnings results, and the company finally increased its financial forecast. 

Here's a link to the Notice of Full-Year Financial Forecast Modifications.

We have modified the financial forecast for the fiscal year ending March 2024,originally published on May 9, 2023.

• We have revised our exchange rate assumptions in consideration of recent exchange rate fluctuations and other economic conditions and reflected the sales results of the first half of this fiscal year in our full-year forecast.
• Our revised outlook is 1,580.0 billion yen in net sales, 500.0 billion yen in operating profit, 600.0 billion yen in ordinary profit, and 420.0 billion yen in profit attributable to owners of parent.
• The assumed exchange rates have been changed from 130 yen to 140 yen per U.S. dollar and 135 yen to 150 yen per euro.
• The annual dividend forecast has been revised from 147 yen to 181 yen per share as a result of the modification of the financial forecast.
• For Nintendo Switch software, we increased our forecast by 5.00 million units to 185.00 million units.

Nintendo increased the forecast for Net Sales by 9 percent, Operating profit by 11.1 percent, Ordinary profit by 25 percent, and Net profit by 23.5 percent. The company also increased the dividend forecast by 23 percent. The forecast for Switch hardware sales remained unchanged, but the company now expects to sell 2.8% more software units by the end of FY 2024. Nintendo did have an opportunity to factor in the Mario Movie effect back in August when the company reported Q1 2024 results, but there is a chance that the yen's persistent weakness against the dollar and euro has also become too hard to ignore. People also keep buying Mario Kart 8 Deluxe.

Keep it locked on Shacknews for all the Nintendo news you can handle.

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.