POE said:
Nope. They expect to make $254 million in operational profit. Net profit are expected to be something like 600 million. |
That's incorrect. Operating income will be $169 million (forecast). Net income will be $254 million.
A huge disparity between operating income and net income isn't good because it inidicates you are making money, but only because of external factors (like currency flucuation and layoffs) not because of your actual core business (video game sales). That's why investors tend to look more closely at the operating income figure, because it's a more accurate look at a company's actual health/performance. That's also why you may recall Nintendo's stock price got rocked last week, because Nintendo downgraded their operating profit number signficantly for the fiscal year.







