- Canon increases its fiscal year operating income forecast to 465 billion yen from a previous 435 billion yen, surpassing estimates of 422.3 billion yen.
- Net income forecast is raised to 335 billion yen, up from a prior 305 billion yen, beating the 298.75 billion yen estimate.
- Net sales are now expected to be 4.60 trillion yen, an increase from the earlier 4.35 trillion yen, also surpassing the 4.35 trillion yen estimate.
- Dividend remains unchanged at 150.00 yen, just below the 150.80 yen estimate.
- Second Quarter Results:
- Operating income for the second quarter was 118.39 billion yen, exceeding the 97.16 billion yen estimate.
- Net income reached 89.86 billion yen, higher than the estimated 67.62 billion yen.
- Net sales amounted to 1.17 trillion yen, outperforming the 1.06 trillion yen estimate.
- Printing sales, including intersegment sales, reached 654.51 billion yen, above the 603.1 billion yen estimate.
- Medical sales, including intersegment sales, were 141.00 billion yen, compared to the 132.57 billion yen estimate.
- Imaging sales, including intersegment sales, hit 244.72 billion yen, beating the 220.83 billion yen estimate.
- Industrial sales, including intersegment sales, totaled 94.46 billion yen, surpassing the 87.43 billion yen estimate.
- R&D expenses were 85.06 billion yen, higher than the 80 billion yen estimate.
- Canon has received 4 buy recommendations, 11 hold recommendations, and 0 sell recommendations from analysts.
Canon Inc on Smartkarma
Analysts on Smartkarma have provided insights on Canon Inc, with Joe Jasper advocating for a bullish sentiment in the market. In a report titled “Buy the Pullback; Market Dynamics Remain Healthy; Buys in Tech, Discretionary, Healthcare, Utilities,” Jasper recommends buying the pullbacks in various indexes and highlights the importance of key support levels. He emphasizes that as long as these supports hold, higher prices can be expected, reinforcing a positive outlook on global equities.
Additionally, analyst Travis Lundy, in his report “Canon (7751) – OK 2023 Results, Better Guidance, Bigger, Longer, Slower Buyback,” discusses Canon’s performance in 2023. While results were mixed and net profit slightly underperformed expectations, Lundy notes that the guidance for 2024 is above consensus. An intriguing development highlighted is Canon’s introduction of a long-dated buyback plan, departing from its traditional short and swift buyback approach. This shift indicates a strategic change in Canon’s shareholder engagement, adding an element of novelty to their capital allocation strategy.
A look at Canon Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
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
Analysts using the Smartkarma Smart Scores have provided an overview of Canon Inc‘s long-term outlook based on various factors. Canon Inc, a leading professional and consumer imaging solutions company known for its digital imaging technologies, has received mixed scores across different categories. It scored high in Growth and Dividend, indicating positive expectations for future expansion and shareholder returns. However, it scored lower in Value, Resilience, and Momentum, suggesting potential challenges in terms of market value, adaptability to changes, and price trends.
Despite some areas of concern, Canon Inc‘s strong focus on innovation and diversified product offerings, which include networked multifunction devices, digital copiers, cameras, and semiconductor equipment, position it well for long-term success. Investors may need to carefully monitor how the company addresses the lower-scoring factors to gauge its overall performance in the coming years.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
