Wedbush Issues Pessimistic Forecast for Nintendo Earnings

Key Points

• Wedbush has lowered its earnings estimates for Nintendo's Q2 2026 from $0.09 to $0.07 per share, while maintaining a "Strong-Buy" rating on the stock.
• Nintendo reported a quarterly EPS of $0.09, matching the consensus estimate, with revenue of $3.80 billion for the quarter.
• Despite the negative outlook for future earnings, Nintendo currently has an average rating of "Buy" from analysts, with several hedge funds increasing their stakes in the company.

Nintendo Co. (OTCMKTS:NTDOY - Free Report) - Stock analysts at Wedbush dropped their Q2 2026 earnings per share (EPS) estimates for shares of Nintendo in a research report issued to clients and investors on Monday, August 4th. Wedbush analyst A. Reese now expects that the company will post earnings of $0.07 per share for the quarter, down from their previous forecast of $0.09. Wedbush has a "Strong-Buy" rating on the stock. The consensus estimate for Nintendo's current full-year earnings is $0.44 per share. Wedbush also issued estimates for Nintendo's Q3 2026 earnings at $0.24 EPS, FY2026 earnings at $0.51 EPS, Q3 2027 earnings at $0.32 EPS, FY2027 earnings at $0.74 EPS, Q1 2028 earnings at $0.14 EPS and FY2028 earnings at $0.80 EPS.

A number of other equities analysts have also issued reports on NTDOY. Citigroup initiated coverage on Nintendo in a research report on Friday, May 2nd. They issued a "buy" rating on the stock. Benchmark raised Nintendo to a "strong-buy" rating in a research report on Monday, May 19th. One investment analyst has rated the stock with a hold rating, three have given a buy rating and two have given a strong buy rating to the company. According to MarketBeat, Nintendo presently has an average rating of "Buy".

Nintendo Stock Up 4.3%

Shares of NTDOY traded up $1.02 during trading on Tuesday, reaching $24.49. The company's stock had a trading volume of 1,565,817 shares, compared to its average volume of 1,724,142. The company has a fifty day moving average of $21.92 and a two-hundred day moving average of $19.63. Nintendo has a twelve month low of $12.00 and a twelve month high of $24.50. The company has a market cap of $127.19 billion, a price-to-earnings ratio of 58.30 and a beta of 0.64.

Nintendo (OTCMKTS:NTDOY - Get Free Report) last released its quarterly earnings results on Friday, August 1st. The company reported $0.09 EPS for the quarter, hitting the consensus estimate of $0.09. Nintendo had a return on equity of 9.92% and a net margin of 19.61%. The firm had revenue of $3.80 billion for the quarter, compared to analyst estimates of $448.24 billion.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC grew its stake in shares of Nintendo by 2,029.9% in the first quarter. GAMMA Investing LLC now owns 275,785 shares of the company's stock worth $4,735,000 after purchasing an additional 262,837 shares in the last quarter. Sterling Capital Management LLC bought a new position in shares of Nintendo in the fourth quarter worth $605,000. Appleton Partners Inc. MA grew its stake in shares of Nintendo by 1.5% in the first quarter. Appleton Partners Inc. MA now owns 130,744 shares of the company's stock worth $2,245,000 after purchasing an additional 1,969 shares in the last quarter. First Horizon Advisors Inc. grew its stake in shares of Nintendo by 192.5% in the first quarter. First Horizon Advisors Inc. now owns 1,825 shares of the company's stock worth $31,000 after purchasing an additional 1,201 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its stake in shares of Nintendo by 13.6% in the second quarter. PNC Financial Services Group Inc. now owns 6,040 shares of the company's stock worth $145,000 after purchasing an additional 724 shares in the last quarter. 0.02% of the stock is currently owned by institutional investors.

About Nintendo

Nintendo Co, Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It also offers video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware systems and related software.