Nintendo will release its third quarter results tomorrow and there are a number of things to watch out for. Market surveillance says they expect Nintendo to post a significant rise in net profit of 13% to ¥130.37 billion. Nintendo previously netted Y115.78 billion. Here’s what Market Watch says to look for tomorrow:
- Operating profit margin in the first half improved to 35.2% from 33.5% in the same period last year, as selling, general and administrative expenses grew more slowly than revenue. Investors are focusing on any further improvement in margins as businesses around the world face high inflation.
- The company predicted it would sell 185.0 million units of Switch software and 15.0 million Switch consoles for the fiscal year ending in March. Nintendo expects fiscal year revenue to fall 1.4% to Y1.580 trillion and net profit to fall 3.0% to Y420.00 billion. Investors are focused on any changes to annual sales and earnings forecasts that management might make after the season holiday shopping.
- Mobile and intellectual property revenue in the first half more than doubled to 55.0 billion YY from 23.5 billion YY in the previous period, thanks in part to the success of “The Super Mario Bros. Movie” since its release in April . Investors are paying attention to the growth rate of income from intellectual property.
