Nintendo's Guidance Seen as a `Mockery,' Sending Shares Lower
- Forecast for profit, software well below analysts’ estimates
- Analysts point to an inventory drop as evidence for new Switch
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Nintendo Co.’s muted forecast for its financial performance in the current fiscal year stunned investors and analysts, sending shares sliding.
The company’s stock tumbled as much as 5.1 percent after it forecast operating profit of 260 billion yen ($2.3 billion) this year, well short of the 350.2 billion yen average of estimates. Analysts were particularly befuddled by the forecast that it will sell 125 million new software titles, significantly below market expectations for 161 million and lower than all but one of 10 projections tracked by Bloomberg.