News

Nintendo Shares Rise on Higher Earnings Forecast

| 24 Oct 2007 20:19
image

Nintendo's stock gets an 8 percent boost prior to its earnings report.

Shares of Nintendo, one of Japan's fastest-rising stocks, rose the highest in three months following rumors that the company will raise its earnings forecast for the rest of the year tomorrow during its quarterly report. Nintendo's stock rose 7.8 percent to ¥68,800 at the close of the trading day, its biggest gain since July 26. Last quarter, the game giant raised its annual expectations by ¥245 billion ($2.1 billion), and sales are expected to beat previous forecasts by 5.8 percent.

Hiroshi Kamide, a Tokyo-based analyst at KBC Securities Japan who holds a "Buy" rating on the stock, said, "An upward revision of full-year earnings targets is likely. It's natural that expectations are high ahead of the year-end shopping season."

Nintendo of America's Vice President of Marketing Perrin Kaplin commented on its financial quarters. "The first two quarters of the year tend to be more quiet. But now we've seen some evidence of sales in that period. Other than the holiday quarter, I think the traditional way of viewing it is not necessarily a slam-dunk. I think a really good product can be a slam dunk any time of the year."

Source: Bloomberg

RELATED CONTENT
Comments on