Nintendo Co., Ltd. (TSE:7974) Half-Year Results: Here's What Analysts Are Forecasting For This Year

Nintendo Co., Ltd. (TSE:7974) last week reported its latest half-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues came in 2.2% below expectations, at JP¥966b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥63.75 being roughly in line with analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nintendo after the latest results.

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After the latest results, the 27 analysts covering Nintendo are now predicting revenues of JP¥2.30t in 2027. If met, this would reflect a satisfactory 5.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 3.1% to JP¥375 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥2.32t and earnings per share (EPS) of JP¥375 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Nintendo

There were no changes to revenue or earnings estimates or the price target of JP¥10,191, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Nintendo analyst has a price target of JP¥21,260 per share, while the most pessimistic values it at JP¥5,000. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Nintendo's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 4.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Nintendo is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥10,191, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Nintendo going out to 2029, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Nintendo you should be aware of.

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