Shares of Japanese video game developer Nintendo (OTC: NTDOY) fell after its fiscal third-quarter earnings report on January 30. The culprit? While Nintendo still reported strong results, they weren't quite as strong as analysts had expected.
Revenue actually declined in the December quarter compared with the prior year, though over the first nine months of the year, revenue was still up about 2.5%. While the company reported expanded margins, quarterly operating income of 168.7 billion yen -- good for 6.4% growth -- still fell a bit short of analyst projections for 175.4 billion yen.
Management also dispelled the rumor that it would unveil a new Switch model in 2020, contradicting reports from earlier in January and perhaps adding to the letdown. Finally, the company's small but promising mobile games segment grew just 10.6%, an underwhelming rate given the slew of new mobile games released this year, such as Mario Kart Tour.