- Increased Forecast: Advantest raised its fiscal year operating income forecast to 226 billion yen, surpassing both the previous forecast of 165 billion yen and analyst estimates of 202.97 billion yen.
- Net Income Projection: The company expects a net income of 167.5 billion yen, higher than the prior projection of 122 billion yen and above the analysts’ estimate of 152.42 billion yen.
- Sales Expectations: Expected net sales are at 740 billion yen, increasing from the prior forecast of 640 billion yen, and exceeding analyst predictions of 694.49 billion yen.
- Dividend Forecast: The dividend per share is forecasted at 39 yen, below the analyst estimate of 60.25 yen.
- Nine Month Operating Profits:
- Semiconductor and Component Test System: 160.75 billion yen
- Mechatronics System: 13.31 billion yen
- Services, Support, and Others: 5.73 billion yen
- Third Quarter Performance:
- Operating Income: 69.27 billion yen, significantly above last year’s 26.83 billion yen and beating the estimate of 57.75 billion yen.
- Net Income: 51.87 billion yen, compared to 21.21 billion yen the previous year, topping the estimate of 46.74 billion yen.
- Net Sales: 218.15 billion yen, marking a 64% increase year-over-year, and surpassing the estimate of 185.83 billion yen.
- Market Sentiment: 16 buy ratings, 6 hold ratings, and no sell ratings indicate strong market confidence in Advantest.
Advantest Corp on Smartkarma
Analyst coverage on Advantest Corp by independent analysts on Smartkarma provides contrasting viewpoints. Travis Lundy, with a bullish lean, highlights the potential of the September dividend trade, anticipating a substantial increase this year compared to the past. Lundy expects significant directional buying, indicating a confident market sentiment towards Advantest Corp.
In contrast, analyst Scott Foster adopts a bearish stance, citing high valuations and low visibility for Advantest Corp. Despite positive sales and profit rebounds, Foster emphasizes the company’s vulnerability to factors like a stronger yen and economic uncertainties. While projecting growth in IC tester revenues, Foster cautions about the stock’s valuation, which is notably high compared to earnings estimates for the next fiscal year.
A look at Advantest Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| 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
Based on the Smartkarma Smart Scores, Advantest Corp shows a promising long-term outlook. With a Growth score of 4, the company is positioned well for expansion and development in the future. Additionally, a Resilience score of 4 signifies the company’s ability to withstand economic challenges and market fluctuations, providing a sense of stability. The Momentum score of 5 further indicates strong positive momentum in the company’s performance, suggesting continued growth.
Advantest Corporation, known for producing semiconductor testing devices and electronic measuring instruments, has secured decent scores across various factors. While Value and Dividend scores are at 2, the higher scores in Growth, Resilience, and Momentum bode well for the company’s sustained success.
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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