246.49 +0.02 (0.01%)
Pre-market: 7:52AM EDT
|Bid||246.68 x 1400|
|Ask||246.60 x 800|
|Day's range||245.82 - 249.50|
|52-week range||175.68 - 263.19|
|Beta (5Y monthly)||0.79|
|PE ratio (TTM)||33.59|
|Earnings date||20 Jul 2021 - 26 Jul 2021|
|Forward dividend & yield||2.24 (0.91%)|
|Ex-dividend date||19 May 2021|
|1y target est||289.71|
(Bloomberg) -- Nintendo Co.’s earnings beat estimates after hit games like Monster Hunter Rise propped up sales of the Switch, but the company warned that global chip shortages may disrupt production of its marquee device.It forecast 500 billion yen in operating profit this year, although Nintendo, like many Japanese companies, often begins the fiscal year with a conservative outlook so it has room to raise the figure later. The company is targeting sales of 25.5 million consoles in the current year ending March 2022. Internally, Nintendo’s management is shooting for production of between 28 and 29 million consoles, according to people familiar with the projections who asked not to be named disclosing company targets.Nintendo’s better-than-expected results suggest the Covid-era boom in gaming that turned Animal Crossing: New Horizons into a global online town hall has legs. The Kyoto-based studio reported operating income of 119.5 billion yen ($1.1 billion) for the March quarter, trouncing the average forecast of 68.3 billion yen. The company sold 28.8 million Switch units in the fiscal year ended March, surpassing the 26.5 million it projected.President Shuntaro Furukawa told reporters on Thursday that Nintendo wasn’t able to produce as many Switch devices as it had hoped due to component shortages. Recent demand has been higher than the company anticipated and the console hasn’t yet reached its peak, he added. Nintendo’s goal is now to surpass its official target of selling 190 million software units this year.The handheld-hybrid Switch maintained momentum in the face of newer gaming machines from Sony Group Corp. and Microsoft Corp., both of which have also suffered from chip shortages limiting production. Buoyed through most of 2020 by Animal Crossing’s runaway success, Nintendo’s signature device rode blockbuster titles including Capcom Co.’s latest Monster Hunter installment and Konami Holdings Corp.’s Momotaro Dentetsu during the most recent quarter.Nintendo’s own product lineup has been relatively quiet in recent months. Bloomberg News has reported that the company plans a big rollout of new titles alongside an upgraded version of the aging Switch -- with a faster Nvidia chip and a Samsung OLED display -- in the latter half of the year. The original console is now more than four years old and was joined by a more affordable Switch Lite variant in late 2019.What Bloomberg Intelligence SaysNintendo needs to drive software sales, live services and mobile games to support earnings growth beyond this fiscal year ending March, in our view, as the Switch platform enters the mature phase of its cycle. Switch hardware sales may peak in 2020 absent a reported but as yet unconfirmed Pro version, putting greater onus on software to drive profit.- Matthew Kanterman and Nathan Naidu, analystsClick here for the research.Read more: Nintendo Is Said to Target Record Year in Switch, Game SalesThe coronavirus outbreak was at first a brake and then an accelerant for Nintendo, choking its supply chain before triggering a demand surge with global lockdowns driving people to seek entertainment and escape. The company’s hardware sales improved by 37% and its software sales also rose 37% to 231 million units over the past fiscal year. It increased its proportion of sales coming from digital downloads to 43% from the previous 34%.Nintendo’s shares closed 1.7% lower Thursday before the results, taking losses this year to 6.4%.(Updates with comments from Nintendo president in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The veteran Apple Inc. executive who runs day-to-day operations at the App Store will be playing defense Thursday in the company’s trial with Epic Games Inc.Matt Fischer will be the first Apple employee to take the witness stand as Epic, the creator of Fortnite, tries to convince a federal judge that the marketplace for apps that run on hundreds of millions of iPhones is operated like a monopoly. Trystan Kosmynka, a senior director at Apple in charge of the app review process, is set to be called to the stand later in the day.Despite having a tenure with Apple of almost 20 years and being in charge of a business that’s estimated to generate more than $20 billion in revenue a year, Fischer keeps a low profile: He’s not featured on Apple’s website, he doesn’t appear at Apple product launch events and he rarely speaks publicly. He reports to Phil Schiller, the company’s top App Store executive, who is expected to be called as a witness later in the trial, along with Chief Executive Tim Cook.Topics Fischer may be questioned about by Epic’s lawyers include App Store business strategy, finances, policies and practices, and market power over iOS devices, according to court filings. Kosmynka, who reports to Apple’s developer relations chief, will be asked about the app review process and App Store curation.How Apple’s App Store Sparked an Epic Trial: QuickTakeThe trial in Oakland, California, comes as Apple faces a backlash -- with billions of dollars in revenue on the line -- from global regulators and some app developers who say its standard App Store fee of 30% and others policies are unjust and self-serving.The fight with Epic blew up in August when the game maker told customers it would replace Apple’s in-app purchase system with its own, circumventing Apple’s commissions from add-ons inside of Fortnite. Apple then removed the game, cutting off access for more than a billion customers.Apple, which vehemently denies abusing its market power, has called Epic’s legal gambit a “fundamental assault” on a business model that is beneficial to both developers and consumers.In the first three days of the trial, Epic put on testimony by its CEO, Tim Sweeney, and other executives at the game maker to make the case that the App Store is a like a “walled garden” that has left users and developers “trapped” in an anticompetitive marketplace.Microsoft to Judge: Apple’s Rules Blocked Our Gaming Service TooEpic has also called as witnesses executives from other companies with gaming businesses, including Microsoft Corp. and Nvidia Corp., to show that they, too, have been constrained by onerous App Store rules.Apple has its used its cross-examination of witnesses to try to undercut their credibility and poke holes in Epic’s antitrust claims.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Zacks Earnings Trends Highlights: Apple, Microsoft, Google, Amazon and Facebook