Nidec Corp (6594) Earnings: 1Q Operating Income Surpasses Estimates with Strong Performance Across Segments

Nidec Corp on Smartkarma

Analyst coverage of Nidec Corp on Smartkarma by Mark Chadwick reveals a mixed quarter for the Japanese company. Despite a 4.4% year-over-year increase in net sales and a significant 90% rise in operating profit, there was a 3.7% quarter-over-quarter decrease in operating profit. Furthermore, full-year guidance for operating profit was revised down by 20%. However, Chadwick remains bullish on the long-term structural electrification thesis.

In another report, Chadwick discusses Nidec’s challenges in the global electric vehicle market but identifies potential catalysts and strong positioning that make it an attractive investment opportunity. With shares and valuations reflecting market pessimism, the analyst sees Nidec as a compelling play on the secular themes of electrification, automation, and energy efficiency at 18 times earnings before interest and taxes (EBIT).

A look at Nidec Corp Smart Scores

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 ahead, Nidec Corp is positioned with a mixed outlook based on the Smartkarma Smart Scores. While the company demonstrates strong momentum with a top score of 5, indicating positive trends in its stock price, other aspects reveal a more moderate performance. With average scores in the areas of value and dividends both at 2, Nidec Corp may not stand out as a high-value or high-dividend stock. However, the company shows promise in growth and resilience, scoring a 3 in each category. Nidec Corp‘s diversification into home appliances and automotive markets, as well as its active involvement in M&A activities, suggest potential avenues for expansion and stability in the long term.

Overall, Nidec Corp holds a solid standing in the market as the world’s top manufacturer of small precision motors. With its reach extending beyond the HDD and optical disk drives to sectors like home appliances and automotive, the company has positioned itself for growth and innovation. Subsidiaries specializing in LCD panel handling robots and camera shutters further showcase Nidec Corp‘s diverse portfolio and potential for future success. Despite varying Smart Scores across different factors, Nidec Corp‘s strategic moves and market presence set a foundation for long-term sustainability and competitiveness in the industry.

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