Nintendo (OTCMKTS:NTDOY) Shares Gap Up on Strong Earnings

Key Points

• Nintendo shares jumped after the company reported better-than-expected quarterly earnings, opening at $11.08 versus the previous close of $10.45.
• The company posted EPS of $0.10, beating estimates by $0.01, while revenue came in at $2.60 billion, slightly below the $2.63 billion consensus.
• Despite the earnings beat, Wall Street sentiment remains mixed, with analysts’ ratings averaging to a “Hold” based on MarketBeat data.

Nintendo Co. (OTCMKTS:NTDOY - Get Free Report) shares gapped up prior to trading on Monday following a better than expected earnings announcement. The stock had previously closed at $10.45, but opened at $11.08. Nintendo shares last traded at $11.0550, with a volume of 1,149,152 shares traded.

The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.01. Nintendo had a return on equity of 13.82% and a net margin of 18.33%.The business had revenue of $2.60 billion during the quarter, compared to the consensus estimate of $2.63 billion. Nintendo has set its FY 2026 guidance at 0.429-0.429 EPS.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the company. Benchmark reiterated a "buy" rating on shares of Nintendo in a research report on Monday. China Renaissance reiterated a "sell" rating on shares of Nintendo in a research report on Wednesday, February 4th. TD Cowen reiterated a "buy" rating on shares of Nintendo in a research report on Tuesday, April 14th. Wolfe Research upgraded Nintendo from an "underperform" rating to a "peer perform" rating in a research report on Thursday, January 22nd. Finally, Zacks Research downgraded Nintendo from a "strong-buy" rating to a "hold" rating in a research report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold".

Institutional Trading of Nintendo

Institutional investors and hedge funds have recently made changes to their positions in the company. Dorsey Wright & Associates bought a new stake in shares of Nintendo in the third quarter valued at about $1,562,000. AdvisorShares Investments LLC bought a new stake in shares of Nintendo in the third quarter valued at about $1,052,000. PNC Financial Services Group Inc. raised its holdings in shares of Nintendo by 30.6% in the third quarter. PNC Financial Services Group Inc. now owns 7,891 shares of the company's stock valued at $168,000 after acquiring an additional 1,851 shares in the last quarter. Appleton Partners Inc. MA raised its holdings in shares of Nintendo by 0.7% in the third quarter. Appleton Partners Inc. MA now owns 127,279 shares of the company's stock valued at $2,716,000 after acquiring an additional 837 shares in the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. raised its holdings in shares of Nintendo by 322.5% in the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 4,225 shares of the company's stock valued at $71,000 after acquiring an additional 3,225 shares in the last quarter. 0.02% of the stock is currently owned by institutional investors.

Nintendo Price Performance

The firm has a fifty day moving average of $13.79 and a two-hundred day moving average of $16.60. The stock has a market capitalization of $56.92 billion, a P/E ratio of 18.43 and a beta of 0.41.

Nintendo Company Profile

Nintendo Co, Ltd., headquartered in Kyoto, Japan, is a global entertainment company best known for designing, manufacturing and marketing video game hardware and software. Founded in 1889 as a playing-card company, Nintendo transitioned into electronic entertainment in the latter half of the 20th century and has since become one of the most recognizable names in interactive entertainment. The company serves markets worldwide, with major operations and customer bases in Japan, North America and Europe, and it maintains a presence through regional subsidiaries, distribution partners and digital storefronts.

Nintendo's business spans console and handheld hardware, first-party software titles, digital services and licensing.

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