Nintendo Ltd/ADR (OTCMKTS:NTDOY) released its annual earning report in 2017 and it includes some staggering numbers. Switch strong sales drove profits of the Company amounted to more than 500% compared to the previous year. And this prediction of growth in 2018. In addition, Nintendo has announced a new, young, President will be taking over as interim leader.
With a huge numbers released and indications the trend continues, we can expect Nintendo’s stock to get a shot in the arm. However, NTDOY is currently down more than 3%.
Switch Sales, A Significant Increase In Profits Nintendo
Nintendo has published its annual statement of income for the year ending 31 March 2018, and the numbers are phenomenal. Especially considering the dark place, and it had just a few years ago.
For the year, Nintendo created 9.66 billion dollars in revenue, an increase of 116% compared to 2016. And while that’s an impressive number, earnings even more: 1.62 billion dollars a year, a whopping increase of 505%.
Driving that Nintendo profit switch sales. The company said it sold more than 15 million handheld consoles over the year, bringing sales to over 17.79 million units. Although it was actually on sale a month before the start of the financial year.
To put this in perspective, his previous new console generation Wii u sold 13.56 million units in the past five years. Sony Corporation (ADR) (Ticker NYSE:SNE) is a leader in this generation of gaming consoles, and its PlayStation 4 recently hit 76 million units — but it was on sale for four and a half years. These strong switch sales-the reason why Nintendo shares are up almost 65% per year and by more than 300% since the dark days fighting on the Wii
The new President and the momentum
The company is not just to kill him in 2017, he has momentum.
Nintendo predicts that it will sell an additional 20 million to switch between consoles in the next year. It also has a red hot Nintendo Labo construction kits that are expected to drive additional revenue, helping to keep the switch hum sales. As a result, Nintendo’s profit for the year 2018 are projected to grow 26% by 2018.
It’s not as impressive as the growth of 505% was recorded at his own expense 2017 — and it could be related to Nintendo stock dives after earnings report. But the company starts in 2018 in a much stronger place, so the triple increase in the number is not in the cards.
In addition to the impressive Nintendo a profit, a massive shift of sales and management by 2018, the company also announced a new President.
The current President and chief Executive officer Tatsumi Kimishima after retiring, Shuntaro Furukawa taking his place. The current President was an interim leader, taking the place in the long run company leader Satoru Itawa, who died in 2015. Furukawa is 46 and was part of the Board of Directors of the company Nintendo. He saw solid choice, whose youth will allow consistency in the leadership, as the company goes out of recovery mode and move forward.
The bottom line for Nintendo stock
Despite today’s drop, Nintendo’s stock is not quite favorable at the moment, although she still has a lot of legroom compared to 2007 heights.
But based on today’s earnings announcement, Nintendo’s profit forecasts for the coming year, and a strong line of products from the company, did not expect it to be cheap to buy in the near future.
At the time of this writing, brad moon not to take a position in any of the above securities.
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