Daily BriefsIndustrials

Daily Brief Industrials: Tokyo Electron and more

In today’s briefing:

  • Tokyo Electron (8035 JP): Caught Out by a Decline in Sales

Tokyo Electron (8035 JP): Caught Out by a Decline in Sales

By Scott Foster

  • A sudden decline in sales led to a 30% sequential decline in operating profit in the three months to June. Year-on-year, operating profit was down 17%.
  • Nevertheless, management left sales and profit guidance unchanged – despite cutting their semiconductor equipment demand forecast – and R&D and capital spending continue to rise. 
  • FY Mar-23 EPS guidance puts the shares on 13x earnings, but potential downside risk is considerable. Stand back while the economic recession unfolds.

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