Nintendo Shares Jump to 6-Year High on Profit Outlook (Update1)
By Dave McCombs
Oct. 4 (Bloomberg) -- Shares of Nintendo Co., the world's biggest maker of handheld video-games, jumped to their highest in more than six years after the company raised its full-year profit, citing sales of its DS model and a weaker-than-expected yen.
The stock jumped 4 percent to 24,760 yen as of the 11 a.m. close on the Osaka Securities Exchange, after rising to as much as 25,100 yen, the highest since Feb. 21, 2000, when the shares closed at a record 25,350 yen. The earnings forecast announcement came after the market shut yesterday.
Nintendo's touch-screen DS player and software such as Nintendogs, an interactive pet game, are helping the company fend off competition from Sony Corp.'s PlayStation Portable. The Kyoto, Japan-based company next month will release the Wii game console, which has a motion-sensor remote controller and a lower price than Sony's delayed PlayStation 3.
Nintendo's market share will probably ``turn up in the next cycle, assisted by the success of the DS portable game console, which the company released ahead of the Wii platform, as well as lower prices compared with competing products, active third-party game developer activity, and the postponement of the PS3's debut in Europe,'' Atsuko Kaneko, an analyst at UBS Securities Japan Ltd., wrote in a note to clients dated yesterday.
Net income will climb to 100 billion yen ($847 million) for the year ending March 31, compared with a July estimate for 83 billion yen, the Kyoto-based company said in a preliminary earnings statement yesterday. Nintendo reported 98.4 billion yen profit a year earlier.
Nintendo shares have soared 83 percent in the past 12 months, on better-than-expected sales of DS players and rising expectations the Wii console will lure new users to video games.
To contact the reporter for this story: Dave McCombs in Tokyo at