Nintendo Shares Jump In Tokyo Exchange On Robust Earnings, Raised FY21 Outlook

Nintendo Co. Ltd (OTC: NTDOY) reported net revenue growth of 37.3% year-on-year to ¥1.4 trillion for the nine months ended FY21.
The revenue from dedicated video games rose by 38.4% to ¥1.36 trillion. Mobile and IP related income rose by 13.8% to ¥42 billion. Revenue from Playing cards declined by 38.1% to ¥ 1.3 billion.
Robust Nintendo Switch sales were noted in Asia and Australia, with strong growth traction in other regions.
Adverse exchange rates translated into a decline of ¥14.9 billion in revenue.
The gross profit rose by 65% to ¥768.8 billion with a margin expansion of 910 basis points primarily boosted by a higher proportion of software sales and digital sales.
Strong gross profit growth led to operating profit growth of 98.2% to ¥521.1 billion with a margin expansion of 1,140 basis points.
The net profit rose by 91.8% to ¥ 376.6. billion and EPS rose by 91.8% to ¥3,161.97.
The robust financial performance has led to increased FY21 net sales, operating profit, and net profit outlook to ¥1.6 trillion, ¥560 billion, and ¥400 billion respectively from the previous outlook of ¥1.4 trillion, ¥450 billion, and ¥300 billion.
Nintendo raised the Switch hardware unit sales outlook from 24 million units to 26.5 million units and raised the Switch software outlook from 170 million units to 205 million units.
The annual dividend per share stood at ¥1,680 per share. The company plans to add ¥200 per share thereof, leading to a total annual dividend of ¥ 1,880 per share.
Price action: NTDOY shares closed lower by 3.53% at $581.50 on Friday. The stock was up 3.4% in Tokyo exchange after reporting earnings Monday.

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