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• Renesas is forecasting a 1H Non-GAAP revenue of 699.29 billion yen to 714.29 billion yen.
• The company is anticipating a Non-GAAP gross margin of 56.1%, along with a Non-GAAP operating margin of 31.4%.
• The net sales for the first quarter were reported at 351.79 billion yen, a decrease of 2.1% y/y.
• Automotive revenue has reached 178.15 billion yen, meeting its estimate of 178 billion yen.
• Industrial/Infrastructure/IoT revenue amounts to 171.58 billion yen, falling slightly short of its estimated 174.75 billion yen.
• The first quarter witnessed a Non-GAAP gross margin of 56.7% and a Non-GAAP operating profit of 113.5 billion yen.
• Operating profits were reported for both the automotive sector (57.35 billion yen) and the Industrial/Infrastructure/IoT sector (55.80 billion yen).
• The Non-GAAP operating margin for the first quarter stood at 32.3%, with a considerable gross profit of 93.37 billion yen in the automotive segment.
• The consolidated financial forecast for the second quarter of the fiscal year ending December 2024 expects an exchange rate of 148 yen per US dollar and 160 yen per euro.
• Analyst ratings display a positive outlook with 14 buys, 1 hold, and 0 sells.
• Comparisons to past results are based on figures reported by the company’s original disclosures.
Renesas Electronics on Smartkarma
Several independent analysts on Smartkarma have provided their insights on Renesas Electronics, shedding light on recent developments and future prospects.
Ethan Aw discusses Mitsubishi Electric’s plan to raise approximately US$800m through a block deal involving the sale of Renesas Electronics shares, which is deemed easily digestible and well-flagged within the market. Travis Lundy comments on Mitsubishi Electric’s gradual stake sell-down in Renesas, noting the string of recent block trades and the relatively smaller size of the current deal. Scott Foster highlights Renesas’ strategic acquisitions, emphasizing positivity for long-term growth despite current sales and profit challenges. Sumeet Singh covers the continued activity in Japan’s placements, including Renesas Electronics‘ significant selldown. Lastly, Brian Freitas touches on index rebalances and ETF flows impacting Asian markets, with a mention of Renesas among the highlighted changes.
A look at Renesas Electronics Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 2 | |
Dividend | 2 | |
Growth | 5 | |
Resilience | 3 | |
Momentum | 2 | |
OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Renesas Electronics has a mix of ratings across different factors. While the company scores highest in Growth with a score of 5, indicating strong potential for future expansion, it lags slightly in other areas. With Value, Dividend, and Momentum scores of 2, the company may not be seen as undervalued, attractive in terms of dividend payouts, or experiencing high stock price momentum. However, with a Resilience score of 3, Renesas Electronics shows moderate strength in weathering market challenges.
Overall, Renesas Electronics Corporation, known for its research, development, design, and manufacturing of electronic components like semiconductors and integrated devices, appears to have a positive long-term outlook primarily due to its strong Growth score. While there are areas for improvement in Value, Dividend, and Momentum, the company’s resilience in the face of market shifts provides a solid foundation for potential future success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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