Analysts cool on Nintendo '09 outlook

The resurgence of the yen, the floundering dollar, and the inflated euro have all amounted to a tumultuous stock price for export-heavy Nintendo. The past year has seen the publisher's ticker fluctuate wildly as analysts and investors alike doubt the publisher's continued ability to enthrall the masses with the Wii and DS.

However, as evidenced earlier today, Nintendo's star power isn't showing signs of wearing off. The publisher reported full fiscal 2008 results that saw net sales rise a dramatic 73 percent year over year to ¥1.67 trillion ($16.2 billion), while profits saw a similarly impressive 47 percent leap to ¥257 billion ($2.5 billion). The tally came in slightly above the ¥1.63 trillion (about $15.6 billion) in revenue Nintendo predicted it would earn in January.

As part of its fiscal year '08 results, Nintendo also outlined its projections for the upcoming financial year. For the six-month period ending September 30, Nintendo expects net sales of ¥760 billion (about $7.2 billion), a year-over-year rise of 9.4 percent, with profits actually dropping off 5.6 percent to ¥125 billion (about $1.2 billion). Nintendo expects the back half of the year to more than make up for initial dipping profits, with full fiscal year profits rising 26.3 percent to ¥325 billion (about $3.1 billion) on revenues of ¥1.8 trillion (about $17.2 billion).

With Nintendo anticipating full year sales up 7.6 percent over this year's impressive haul, analysts have responded in kind by essentially saying, "That's it?" Financial news service Bloomberg reports today that Nintendo's 2009 outlook came in markedly lower than many estimates, thanks in large part to the yen's continued strengthening. Surveying six analysts, Bloomberg found the industry watchers had arrived at a median consensus of ¥337.1 billion (about $3.2 billion). The financial service also noted that Nintendo's 7.6 percent sales gain would be the slowest growth for the publisher in three years.

Nintendo's stock slipped 1.4 percent to ¥57,900 (about $554) per share on the Tokyo Stock Exchange after its earnings announcement, with the publisher's stock down 13 percent on the year.