Earnings Alerts

SMC Corp (6273) Earnings Analysis: FY Operating Income Forecast Misses Estimates, Despite Beating Net Income and Sales Projections

  • SMC’s operating income forecast comes in lower than estimates, with a prediction of 234.00 billion yen, versus an estimated 246.27 billion yen.
  • The company’s net income is forecasted to be 194.00 billion yen, slightly higher than the estimated 193.24 billion yen.
  • SMC predicts net sales of 840.00 billion yen, a tad lower than the estimated 841.17 billion yen.
  • The forecasted dividend is 1,000 yen, higher than the estimated 989.00 yen.
  • SMC’s fourth quarter results reveal an operating income of 41.04 billion yen, down by 32% year on year, and lower than the projected 50.46 billion yen.
  • The fourth quarter net income is 41.02 billion yen, 19% lower than the previous year, but higher than the forecasted 37.91 billion yen.
  • SMC’s net sales for the fourth quarter come in at 194.25 billion yen, a downturn of 1.5% from the previous year, but higher than the estimate of 188.09 billion yen.
  • The company stands backed by 14 buy ratings, 2 hold ratings, and no sell ratings.

A look at SMC Corp Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience4
Momentum4
OVERALL SMART SCORE3.2

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

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The outlook for SMC Corp appears promising in the long term based on the Smartkarma Smart Scores. With robust scores in Growth, Resilience, and Momentum, the company is positioned favorably for future performance. SMC Corp‘s focus on expanding its product offerings to align with market demands for automated equipment, especially in the realm of information and communications products, bodes well for its growth prospects. Although the Value and Dividend scores are moderate, the stronger ratings in Growth, Resilience, and Momentum suggest a positive trajectory for SMC Corp in the coming years.

SMC Corporation, a manufacturer of directional control devices, air valves, filters, cylinders, and actuators, aims to evolve into a comprehensive provider of automated equipment. With a solid emphasis on meeting the evolving market needs in information and communications products, SMC Corp‘s Smartkarma Smart Scores reflect a company with a strong potential for growth and resilience in the dynamic industrial landscape. Investors may find SMC Corp‘s forward-looking approach and alignment with market trends as key factors indicating a promising long-term outlook for the company.

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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.
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