Published , by Asif Khan
Published , by Asif Khan
Nintendo's out with its Q3 FY 2024 earnings release, and things appear to be going better than the company expected when it last provided an updated forecast in November 2023. The Big N is increasing its sales forecast by 3.2% and bumping up the expected annual dividend payout by 8 yen.
Nintendo may have set some low expectations when it provided its initial FY 2024 forecast, but trends in the Yen foreign exchange rate alongside the undeniable force of the Mario Movie Effect have things looking better than the company projected in November 2023.
Some highlights from this fiscal year at Nintendo are certainly the releases of The Legend of Zelda: Tears of the Kingdom, and Super Mario Bros. Wonder, but other much older titles like Mario Kart 8 Deluxe have even seen a bump in sales. Nintendo noted in the earnings release that "the April release of The Super Mario Bros. Movie positively impacted sales of Mario related titles, such as Mario Kart 8 Deluxe."
the man with the briefcase on Cortex
The company now expects to sell 15.5 million Nintendo Switch console units in its seventh year of existence, and software continues to sell. While Nintendo originally projected a down year, it appears that sales will show modest growth this late in a console cycle. Some might say that is a classic case of under-promise and over-deliver by the company, but long-term shareholders and analysts have come to expect a level of caution from the executive team when forecasting for the full year.
Nintendo shareholders can now expect a slighty better dividend payout than was projected in November 2023 when the company increased the forecast by 23%. This is the second time in the fiscal year that NIntendo has increased the expected payout.
the man with the briefcase on Cortex
While Nintendo did modify the exchange rate assumption from 150 yen to 155 yen per euro, the assumed exchange rate for the U.S. dollar remained unchanged at 140 yen per U.S. dollar. The current dollar yen exchange rate sits at 148.58 yen to the dollar, so there may be even more currency tailwinds for Nintendo next quarter.
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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