TOKYO, July 29 (BestGrowthStock) – Japan’s Nintendo Co Ltd (7974.OS: )
posted a 42 percent drop in quarterly operating profit and kept
its full-year forecast, hit by slowing demand for its handheld
game device and a stronger yen.
The world’s leading video game machine maker said its
operating profit fell to 23.3 billion yen ($266 million) in
April-June from 40.4 billion. The average estimate of two
analysts polled by Thomson Reuters was 31 billion yen.
Nintendo kept its forecast for operating profit to fall 10
percent to 320 billion yen in the year to March 2011. The market
consensus was for 305 billion yen.
Nintendo is vying for business with Sony Corp (6758.T: ) and
Microsoft Corp (MSFT.O: ) amid a squeeze in demand worldwide for
vidoegames and consoles. Analysts expect Nintendo’s profitability
to erode until it launches a new Wii console and a 3D version of
its popular DS handheld game player.
Shares of Nintendo have fallen 21 percent over the past three
months versus a 11 percent drop in the benchmark Nikkei average
(.N225: ).
Stock Market Analysis
(Reporting by Tim Kelly; Editing by Anshuman Daga)
Nintendo posts Q1 profit fall, keeps outlook
Commnets
Copyright 2011 Thomson Reuters. Click For Restrictions
