Nintendo Co. shares
7974,
fell sharply Wednesday morning after it lowered its fiscal-year earnings projections due to weaker sales of its Switch consoles and software.
The Japanese videogame company’s shares were recently 7.2% lower at 5,217 yen after falling as much as 8.5% earlier.
Nintendo said Tuesday after market close that it expects net profit to drop 22.5% to Y370.00 billion ($2.82 billion) for the fiscal year ending in March, more sharply than its previous projection of a 16% fall.
Nintendo forecasts that fiscal-year revenue will decrease 5.6% to Y1.600 trillion, compared with its previous projection of a 2.7% decline, as it expected slower sales of its Switch consoles and software.
The company cut its forecast for Switch console sales to 18.0 million for this fiscal year from its previous view of 19 million units and reduced its projection of Switch software sales to 205.0 million copies from 210.0 million.
The company said that for the nine-month period ended Dec. 31, net profit fell 5.8% from a year earlier to Y346.23 billion. Its nine-month operating-profit margin deteriorated to 31.7% from 35.8% a year earlier as costs of sales and other expenses increased despite a revenue decline.
Credit: marketwatch.com