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Nikon's (NINOY) Q2 Earnings Decrease Y/Y, Guidance Upbeat

Nikon Corporation NINOY reported a net profit of ¥7 billion for the second quarter (ended Sep 30, 2022) compared with the year-ago profit of ¥10.6 billion.

For the second quarter, revenues rose 1.4% year over year to ¥142.7 billion.

Segment Details

The Imaging Products (37.4% of revenues) segment’s revenues rose 36% year over year to ¥53.3 billion in the reported quarter, owing to higher sales of Z 9 full-frame mirrorless camera and yen depreciation.

Precision Equipment’s (29.4% of revenues) revenues declined 37.8% from the year-ago quarter to ¥41.9 billion. The downtick was mainly caused by decreased sales of flat panel display lithography systems.

Healthcare (17.5% of revenues) revenues rose 44.8% year over year to ¥24.9 billion in the reported quarter, owing to robust customer demand in North America for biological microscopes and retinal diagnostic imaging systems and weaker yen.

Components’ (9.2% of revenues) revenues increased 45.6% from the year-ago quarter to ¥13.1 billion. The uptick was mainly caused by high sales growth in Digital Solutions and Customized Products Business.

Industrial Metrology and Others’ (6.7% of revenues) revenues jumped 20.3% year over year to ¥9.5 billion. The uptick was mainly caused by high sales growth of video measuring systems, industrial microscopes and X-ray and CT systems.

Operating Details

In the second quarter (ending Sep 30, 2022), Nikon reported an operating profit of ¥9.1 billion compared with the year-ago quarter’s operating profit of ¥12.2 billion.

The Imaging Products segment’s operating profit was ¥8.6 billion compared with the operating profit of ¥3.3 billion in the year-ago quarter.

Precision Equipment’s operating profit was ¥2.2 billion compared with the operating profit of ¥14.1 billion in the year-ago quarter.

The Healthcare business’s operating profit was ¥2.8 billion compared with the operating profit of ¥0.5 billion in the year-ago quarter.

The Components’ operating profit was ¥4.4 billion compared with the operating profit of ¥1.3 billion in the year-ago quarter.

The Industrial Metrology and Others segment’s operating profit was ¥0.9 billion against an operating loss of ¥0.6 billion in the year-ago quarter.

Balance Sheet

As of Sep 30, 2022, cash and cash equivalents were ¥ 345.4 billion compared with ¥ 367.4 billion as of Jun 30.

Long-term bonds and borrowings were ¥107.5 billion as of Sep 30, 2022, compared with ¥95.84 billion as of Jun 30.

Guidance

For the year ending on Mar 31, 2023, revenues are projected to be ¥645 billion compared with the earlier guidance of ¥625 billion, suggesting a rise of ¥105.4 billion from the previous year’s reported figure.

Imaging Products’ revenues are expected to rise 29.1% year over year to ¥230 billion. Precision Equipment’s revenues are anticipated to increase 8.9% to ¥230 billion. Healthcare revenues are expected to rise 27% to ¥93 billion.

Components’ revenues are expected to jump 29.7% year over year to ¥53 billion. Industrial Metrology and Others’ revenues are expected to increase 8.3% to ¥39 billion.

Operating profit is estimated to be ¥55 billion. Earnings for the fiscal year are projected to be ¥115.63 per share compared with the earlier forecast of ¥114.78 per share.

Zacks Rank & Stocks to Consider

Nikon currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader technology space are Arista Networks ANET, Pure Storage PSTG and Jabil JBL. Jabil and Arista Networks currently sport a Zacks Rank #1, whereas Pure Storage currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks.

The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.33 per share, up 7.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.

Arista Networks earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have decreased 5.7% in the past year.

The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.

Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 4.5% in the past year.

The Zacks Consensus Estimate for Jabil’s fiscal 2023 earnings is pegged at $8.18 per share, rising 3.8 in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.

Jabil’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 9.3%. Shares of JBL have decreased 3.2% in the past year.


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