- Kao’s operating income for the first quarter was impressively 21.98 billion yen, far exceeding the previous year’s 7.29 billion yen and surpassing the estimate of 18.78 billion yen.
- Net income for the same period also showed impressive growth, with a figure of 16.47 billion yen against the prior year’s 4.82 billion yen.
- Net sales rose by 5.2% year over year, reaching 365.80 billion yen. This performance was better than the estimated net sales of 355.67 billion yen.
- The company still expects to achieve an operating income of 130.00 billion yen, falling slightly short of the estimated 136.05 billion yen.
- Furthermore, Kao maintains its forecast for net income at 98.00 billion yen, which falls slightly lower than the 102.73 billion yen estimate.
- The company’s forecast for net sales remains unchanged at 1.58 trillion yen, which aligned with the existing estimate.
- It also anticipates a dividend of 152.00 yen, slightly below the estimate of 152.44 yen.
- In terms of investor sentiment: the firm gets 5 buys, 4 holds, and 2 sells.
- All comparisons to past results are based on values reported by the company according to its original disclosures.
A look at Kao Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| 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
Looking towards the long-term future, Kao Corporation, a manufacturer of household and chemical products, presents a mixed outlook based on the Smartkarma Smart Scores. While boasting strong momentum with a score of 4, indicating a positive trend in its stock performance, Kao Corp faces challenges in areas such as value and growth with scores of 2 in both categories. This suggests that the company may be trading at a higher valuation compared to its intrinsic value and could potentially see slower growth in the future. However, Kao Corp demonstrates resilience with a score of 3, implying a moderate ability to weather economic uncertainties, and offers a promising dividend with a score of 3, indicating a stable payout to investors.
In summary, Kao Corporation continues to be a prominent player in the manufacturing sector, producing a wide range of products including cosmetics, cleaning items, and specialty chemicals. With varying Smart Scores across different factors, investors may need to carefully consider the company’s momentum, dividend stability, value proposition, growth potential, and resilience when making informed investment decisions regarding Kao Corp‘s long-term prospects.
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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