• Advantest’s operating income forecast falls short of estimates, predicting 90.00 billion yen against the estimated 136.03 billion yen.
• The firm’s net income is also expected to miss estimates, with a prediction of 67.00 billion against the 103.35 billion yen estimated.
• Advantest sees its net sales reaching 525.00 billion yen, which is lower than the estimated 568.29 billion yen.
• In the fourth quarter results, operating income was reported as 19.53 billion yen, presenting a decrease of 49% year on year (y/y). This is also below the estimate of 24.76 billion yen.
• The net income for the same period was 15.15 billion yen, a 50% decrease y/y, and less than the estimated 18.9 billion yen.
• Net sales, however, surpassed estimates at 135.76 billion yen, which is a 7.9% decrease y/y, compared to the estimate of 131.12 billion yen.
• Advantest stock currently has 11 buys, 8 holds, and 0 sells according to market reports.
• All assessments are made in comparison with previous results based on company reports.
Advantest Corp on Smartkarma
Analyst coverage on Advantest Corp on Smartkarma reveals mixed sentiments from top independent analysts. Scott Foster, in the report titled “Advantest (6857 JP): AI Speculation Discounted,” points out a cyclical recovery driven by demand for High Bandwidth Memory testers. Despite a recent drop in stock price, Foster suggests taking profits and waiting due to the stock being up significantly year-to-date. He anticipates a potential decline in the projected P/E ratio down the road.
On the other hand, Mark Chadwick‘s analysis in “Advantest (6587) | Testing the Limits of AI” highlights Advantest’s strong Q3 results attributed to high demand for memory testers, leading to an increase in full-year guidance. Chadwick, however, expresses a bearish outlook, deeming the stock overvalued amidst AI-hype, with a potential downside of 25%. The contrasting views provide investors with valuable insights into the company’s performance and future prospects.
A look at Advantest Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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
In assessing Advantest Corp‘s long-term outlook based on the Smartkarma Smart Scores, the company demonstrates a promising future. With a strong Growth score of 4 and Momentum score of 5, Advantest Corp is positioned well for sustained expansion and market performance. The company’s focus on innovation and ability to capitalize on market trends contribute to its positive trajectory. Additionally, its Resilience score of 3 indicates a capacity to withstand economic fluctuations, providing a stable foundation for growth.
Advantest Corp‘s Value and Dividend scores of 2 each suggest that while the company may not be currently undervalued or a top dividend player, its core business strengths in semiconductor testing devices and electronic measuring instruments remain solid. Overall, with a balanced set of Smart Scores, Advantest Corp appears well-equipped to ride the wave of technological advancements and market demands in the semiconductor industry, positioning itself as a key player in the future landscape of technology and innovation.
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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