Nintendo Co., Ltd. (OTC:NTDOY) Surpasses Earnings Expectations but Faces Revenue Shortfall
NintendoNintendo(US:NTDOY) Financial Modeling Prep·2026-02-03 15:03

Core Insights - Nintendo reported earnings per share of $0.88, significantly exceeding the estimated $0.20, while revenue of $5.18 billion fell short of the anticipated $5.29 billion [1][6] - The company maintains its sales and earnings forecasts for the Switch 2, expecting to sell 19 million units by the fiscal year ending March 2026, an increase from the previous forecast of 15 million units [2] - Despite a 30% decline in share price since a record high in August, Nintendo reported a 23% increase in quarterly profit, driven by strong sales of the Switch 2 [3] Financial Metrics - Nintendo's price-to-earnings (P/E) ratio is approximately 31.8, with a price-to-sales ratio of about 6.74 and an enterprise value to sales ratio of approximately 5.76, indicating the company's market value relative to its sales [4] - The company has a low debt-to-equity ratio of 0.018, indicating minimal debt compared to equity, and a current ratio of approximately 0.027, showcasing its ability to cover short-term liabilities [5] - Rising memory chip costs have not significantly impacted Nintendo's earnings for the current financial year [5][6]