Japanese video game company Nintendo (NTDOY) has issued financial results that beat Wall Street forecasts even though its sales and profit declined from a year ago.
Nintendo reported a net profit of 90.3 billion yen (C$830 million) versus 75.7 billion yen that had been expected for its fiscal second quarter.
The company’s revenue totaled 334.9 billion Japanese yen compared to 317.3 billion yen that was anticipated among analysts.
Nintendo attributed the results to the continued success of its “Super Mario Bros.” movie, which was released in theatres earlier this year and has grossed $1.36 billion U.S. at the global box office.
The company said it has also gotten a boost from brisk sales of its “Legend of Zelda: Tears of the Kingdom” video game, also released earlier this year. Nintendo said it sold 19.5 million units of the latest Zelda video game over the last six months.
However, despite the earnings beat, Nintendo’s revenue declined 4% year-over-year and its profit dropped 19% from the same period of 2022.
Owing to the popularity of Zelda and other video games, Nintendo said it sold 6.84 million Switch consoles between April and the end of September this year, up 2.4% year-over-year.
The company raised its full-year forecasts, saying it now expects net sales for its entire fiscal year, which ends in March 2024, of 1.58 trillion yen, up from a previous forecast of 1.45 trillion.
Nintendo said net profit will be 420 billion yen, up from a previous forecast of 340 billion yen. The company maintained its forecast for sales of 15 million Switch consoles this fiscal year.
Over the last 12 months, Nintendo’s stock has gained 2% and currently trades at $10.68 U.S. per share.
