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Nintendo Supplier Hosiden Lifts Profit Outlook on Gaming Demand

The company sees operating profit jumping 18% as mobile and gaming sectors outperform
Japan
h 6804.TSE Mid and Small Cap 2000 Tech 350
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Japanese electronic components maker Hosiden Corp. raised its profit forecast for the second quarter, despite facing significant headwinds in its overall business performance.

The Osaka-based manufacturer, which supplies parts for Nintendo’s gaming hardware, now expects operating profit to reach 8 billion yen ($53 million), up from its previous estimate of 6.8 billion yen. The company also increased its sales target to 116 billion yen from 112 billion yen.

The improved outlook comes even as Hosiden grapples with a 7.1% year-over-year decline in sales and a steep 39.8% drop in net profit. The company cited stronger-than-anticipated orders in its gaming and mobile communications segments, along with an improved product mix and favorable currency movements.

While the revised forecast shows some resilience in specific business lines, the sharp decline in ordinary profit, down 42.8% from the previous year, signals ongoing challenges. The mixed results highlight the company’s dependency on gaming sector demand and currency fluctuations to offset broader market pressures.

The earnings revision reflects a 17.6% increase in operating profit projection, while net profit forecast sees a modest 2.3% uptick to 4.4 billion yen. The company now expects earnings per share of 85 yen, up from its previous forecast of 83.19 yen.

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