Investing.com — Nintendo reported July-September operating profit below expectations as sales of its Switch 2 console fell sharply, though Citi expects any share price weakness to be temporary.
Operating profit fell 16% year over year to 73.9 billion yen, short of the 88 billion yen market consensus. Switch 2 unit sales dropped 41% to 2.67 million, and software unit sales of 46.95 million also missed expectations.
Citi said rising memory chip prices may have hurt Switch 2 profitability more than the market had assumed.
Nintendo kept its full-year operating profit forecast of 370 billion yen. To hit its target of 60 million Switch 2 software units, it will need year-over-year sales growth in the second half.
“Since July-September results came in below consensus, we expect the stock to react negatively near term,” Citi wrote.
The bank said it will watch the company’s results briefing on Friday for updates on how weaker Switch 2 profitability will affect future earnings, as well as any plans to boost console sales.
Citi noted that The Legend of Zelda: Ocarina of Time, a Switch 2 exclusive released on Wednesday, has earned a Metacritic score of 96. It expects the game to support holiday sales, along with promotion around the live-action Legend of Zelda film due on April 30, 2027.
“Given these growth drivers, we believe the shares will recover following a temporary correction,” the bank said.
Original Article
Nintendo profit misses as Switch 2 sales slump; Citi sees temporary dip
IREN stock plunges 18% as Microsoft raises concerns over data center delays
China’s Moonshot AI seeks Nvidia Blackwell access in Europe, CNBC reports
Story via Sg Finance Yahoo. Read the original article
