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Pachter gives expectations for Nintendo earnings

by rawmeatcowboy
25 January 2011
GN Version 3.1

After the close of the Tokyo Stock Exchange on Thursday, January 27 (4:00pm Tokyo / 2:00am ET), Nintendo will report fiscal Q3 2011 (ending December) results.

We expect Nintendo to report results below our estimates for revenue of 510 billion and EPS of 642, and close to the consensus estimates of 465 billion and EPS of 552.

We expect Nintendo to maintain FY:11 guidance.

The 3DS will be released in Japan on February 26 (at 25,000), on March 25 in Europe (at a retailer-defined price), and on March 27 in the US (at $250).

We expect that the release of the 3DS to be a catalyst offsetting weak guidance and unfavorable F/X.

Maintaining our NEUTRAL rating and 22,000 Yen price target, which reflects a forward P/E multiple of 10x our FY:12 adjusted EPS estimate of 1,300, plus 9,000/share in cash.

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