By Kosaku Narioka

Nintendo is scheduled to report third-quarter results on Tuesday. Here is what you need to know:

NET PROFIT: Nintendo is expected to post a 6.7% rise in net profit to 145.9 billion yen, equivalent to $940.1 million, for the three months ended December, according to a poll of analysts by Visible Alpha. That would compare with Y136.7 billion in the year-earlier period.

REVENUE: Third-quarter revenue is estimated to have fallen 13% to Y522.3 billion, according to the Visible Alpha poll.

The stock has risen 9.8% so far this year, closing at Y10,175 on Monday. It gained 26% in 2024, driven by hopes that a new console will boost its earnings.

WHAT TO WATCH:

--Nintendo said in January that it would start selling the successor to its nearly eight-year-old Switch console this year but didn't reveal the price, the launch date nor specifications. Investors will be watching for hints about the new console and software plans.

--For the fiscal year ending March, Nintendo has projected revenue to decline 23% to Y1.280 trillion and net profit to drop 39% to Y300.00 billion. Investors will be focusing on any changes management may make to the annual guidance following the holiday shopping season.

--First-half mobile and intellectual property-related income dropped 43% to Y31.2 billion from a high base owing to the blockbuster success of "The Super Mario Bros. Movie" in 2023. Investors will be paying attention to any signs of a recovery in intellectual-property revenue as the company attempts to diversify its income streams.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 03, 2025 06:09 ET (11:09 GMT)

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