• Sumco’s net income forecast of 10.00 billion yen beats the estimate of 5.77 billion yen.
• The forecasted operating income is at 17.60 billion yen, surpassing the estimate of 10.25 billion yen.
• The company sees net sales amounting to 192.50 billion yen, which is more than the estimated 179.9 billion yen.
• For the second quarter, Sumco projects a dividend of 10.00 yen.
• In the first quarter results, operating income was 8.69 billion yen, a reduction of 67% y/y, but still higher than the estimated 6.39 billion yen.
• Net income for the first quarter stood at 5.06 billion yen, registering a drop of 87% y/y, however it outperformed the estimate of 3.45 billion yen.
• Net sales during the first quarter amounted to 93.51 billion yen, 15% lower y/y, yet above the estimated 89.43 billion yen.
• There are 10 buys, 7 holds and 3 sells of the company’s stocks and shares.
• All facts are based on values reported by the company’s original disclosures.
SUMCO Corp on Smartkarma
Analyst coverage of SUMCO Corp on Smartkarma reveals a cautious outlook on the company’s performance. William Keating, in the report titled “SUMCO’s Sobering Outlook For Silicon Wafers,” highlights Q423 revenues reaching ¥105.1 billion, showing a 5% QoQ increase but a concerning 10% YoY decline. EBITDA also dropped by 33% QoQ to ¥22.1 billion. Keating predicts a further 17% QoQ revenue decline in Q124 to ¥87 billion. However, there is a glimmer of hope with the expected doubling of wafer demand for servers by 2027 due to AI advancements.
In another report by William Keating, “Silicon Wafers. SUMCO Sounds The Alarm As Inventory Continues To Climb,” the analyst foresees a ¥8.6 billion QoQ decrease in SUMCO’s Operating Profit in Q423. Keating emphasizes the company’s commitment to implementing significant production cuts to address the escalating inventory levels. Despite a 10% QoQ decline in global silicon wafer area shipments in Q323, customer inventory remains persistently high with no signs of reduction, indicating ongoing challenges for SUMCO’s operational performance.
A look at SUMCO Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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
According to Smartkarma Smart Scores, SUMCO Corp is showing promising signs for long-term growth. With a solid score of 4 in Growth and Momentum, the company seems to have good potential to expand and capitalize on market trends. Additionally, scoring well in Resilience and Value with scores of 3 indicates a stable foundation and fair valuation in the market.
SUMCO Corporation, a leading manufacturer of silicon wafers for the semiconductor industry, has a global presence. The company’s products are essential for the production of solar batteries and ultra-high purity quartz used in silicon manufacturing vessels. With its balanced Smart Scores across various factors, SUMCO Corp is positioned for steady growth and resilience in the semiconductor market.
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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