Wedbush Lowers Nintendo Earnings Forecast

Nintendo Co., Ltd. (OTCMKTS:NTDOY) is facing a more challenging outlook, as analysts at Wedbush have revised their earnings estimates for the upcoming quarters. In a recent research note issued to investors on January 30th, Wedbush analyst M. Pachter announced that he now projects Nintendo's earnings per share (EPS) for the third quarter of 2025 to be $0.18, slightly reduced from an earlier estimate of $0.19.

This forecast comes amid broader expectations for Nintendo's full fiscal year, where analysts currently anticipate earnings of $0.45 per share. Additionally, Wedbush has provided projections for subsequent quarters, forecasting earnings of $0.12 for Q4 2025, $0.13 for Q1 2026, $0.17 for Q2 2026, $0.26 for Q3 2026, and $0.14 for Q4 2026. Overall, they predict an EPS of $0.69 for FY2026. The estimates continue into FY2027, with projected earnings of $0.15 for Q1, $0.18 for Q2, $0.28 for Q3, and an EPS of $0.76 for the full year.

Recent Earnings Report

Nintendo recently released its quarterly earnings data on November 5th, revealing an EPS of $0.04 for the quarter, which fell short of analyst expectations that anticipated $0.10. Revenue for the quarter was reported at $1.86 billion, significantly below the expected $2.25 billion, reflecting potential struggles in meeting market demands and expectations. Despite this, Nintendo managed to achieve a net margin of 23.37% and a return on equity of 12.78%, suggesting a level of operational efficiency amidst the revenue shortfall.

Analyst Ratings and Stock Performance

Interestingly, separate from Wedbush's predictions, TD Cowen initiated coverage on Nintendo and assigned a “buy” rating to its stock. The stock's performance has also seen movement in recent trading sessions. As of Friday, NTDOY shares opened at $16.70, having a 52-week low of $11.36 and a high of $16.90. Nintendo currently has a market capitalization of $86.75 billion, a P/E ratio of 34.57, and a beta value of 0.45, indicating lower volatility compared to the broader market. The business's recent moving averages stand at $14.76 for 50 days and $13.86 for 200 days.

Institutional Investor Activity

Institutional investors have been active with their positions in Nintendo. Several institutions recently adjusted their holdings, with ORG Wealth Partners LLC acquiring a new stake valued at about $99,000 in the third quarter. In the fourth quarter, Diversified Trust Co purchased shares worth $182,000, and GAMMA Investing LLC increased its position by 53.4%, now holding shares valued at $189,000 after acquiring additional stock.

Appleton Partners Inc. MA also reported a slight increase in their stake, now owning 133,225 shares valued at $1,775,000. Collectively, institutional investors own about 0.02% of Nintendo's stock, highlighting a cautious yet engaged interest from larger financial entities.

Nintendo's Business Overview

Nintendo Co, Ltd. operates globally, crafting and selling home entertainment products across multiple regions including Japan, the Americas, and Europe. The company is well-known for its video game platforms, playing cards, and console hardware systems, which continue to shape the gaming landscape.

Conclusion

As Nintendo navigates these challenging economic waters and faces altered earnings expectations from analysts, investors may want to closely monitor the company's response and strategic direction in the coming quarters. With institutional interest shifting and varying analyst sentiments, the outlook for Nintendo remains a topic of keen interest in the market.

Nintendo, Earnings, Forecast