Earnings Alerts

Exceptional Earnings Forecast: Toyo Suisan Kaisha (2875) Beats Estimates with Hefty FY Operating Income

  • Toyo Suisan’s operating income forecast is 72.00 billion yen, surpassing the estimated 66.21 billion yen.
  • THe net income is projected to be 59.00 billion yen, which beats the estimated 53.12 billion yen.
  • Net sales are expected to reach 510.00 billion yen, more than the estimate of 499.04 billion yen.
  • The dividend is estimated to be 170.00 yen, overcoming the estimate of 157.19 yen.
  • Fourth quarter results show an operating income of 18.69 billion yen. This is greater than both last year’s 8.45 billion yen and the estimated 12.91 billion yen.
  • The net income 15.75 billion yen has also shown an increase from the previous year’s 7.76 billion yen and beats the estimated 10.7 billion yen.
  • Net sales of 130.61 billion yen were reported in the fourth quarter, marking an 18% increase year-on-year, and exceeding the estimate of 125.2 billion yen.
  • The company’s performance has been favoured by analysts, with eight advising to buy and one to hold. There are no recommendations to sell.

Toyo Suisan Kaisha on Smartkarma

Analyst coverage of Toyo Suisan Kaisha on Smartkarma has been gaining traction, especially with the recent report by Oshadhi Kumarasiri. In the report titled “Toyo Suisan: Activist Advocates For Legacy Divestiture & More Capital for Global Expansion,” Nihon Global Growth Partners urges Toyo Suisan to make strategic changes. The firm recommends exiting low-return legacy businesses, increasing the payout ratio to 40%, and initiating a Β₯20bn share buyback. This move comes as a response to perceived over-concentration in legacy ventures that yield subpar returns, signaling potential shifts in Toyo Suisan’s growth strategy.

The insights presented by Oshadhi Kumarasiri shed light on activist investor sentiments surrounding Toyo Suisan Kaisha. With a bullish stance, the report advocates for a more aggressive approach to capital allocation and expansion. As Toyo Suisan emerges as a target for activist investors in Japan, the recommendations put forth aim to optimize the company’s performance and unlock shareholder value. This coverage on Smartkarma underscores the evolving dynamics within Toyo Suisan Kaisha and sets the stage for potential strategic transformations in response to investor advocacy.


A look at Toyo Suisan Kaisha Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience5
Momentum5
OVERALL SMART SCORE3.6

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 at Smartkarma have reviewed the Smart Scores for Toyo Suisan Kaisha, indicating a mixed outlook for the company. With a Value score of 2 and a Dividend score of 2, it suggests that the company may not be currently undervalued and may not offer significant dividend returns. However, Toyo Suisan Kaisha shines in terms of Growth, scoring a 4, indicating positive future growth potential. The company also excels in Resilience and Momentum, scoring 5 in both categories, showcasing strong capabilities to withstand economic challenges and maintain positive market momentum.

Overall, Toyo Suisan Kaisha, LTD., primarily involved in seafood processing and sales, as well as manufacturing various food products under the Maru-chan brand, displays a promising long-term outlook. Despite average Value and Dividend scores, the company’s strong Growth, Resilience, and Momentum scores position it well for future expansion and market performance.


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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