- Daikin’s third-quarter operating income was ¥72.15 billion, a 2% increase year-on-year, but below the estimated ¥90.99 billion.
- Net income for the third quarter was ¥35.06 billion, marking a 14% decline year-on-year and falling short of the expected ¥58.16 billion.
- Third-quarter net sales amounted to ¥1.10 trillion, a 5.9% increase year-on-year, slightly below the forecasted ¥1.12 trillion.
- For the first nine months, operating income rose by 4% year-on-year, reaching ¥318.74 billion.
- Net sales for the nine-month period stood at ¥3.59 trillion, reflecting a 10% year-on-year increase.
- Daikin maintains a full-year operating income forecast of ¥428.00 billion, aligning closely with the estimate of ¥427.01 billion.
- The full-year net income is projected to be ¥267.00 billion, slightly above the estimate of ¥265.98 billion.
- Daikin continues to foresee annual net sales of ¥4.77 trillion, matching the market estimate.
- The company plans to maintain its dividend at ¥320.00, consistent with projections.
- Analyst ratings include 11 buys, 8 holds, and 1 sell.
Daikin Industries on Smartkarma
Analysts on Smartkarma, such as Mark Chadwick, are closely covering Daikin Industries, a company that is facing uncertainties in its Q1 earnings according to Chadwick’s research report titled “Daikin (6367) | Q1 Earnings: Frozen in Uncertainty.” The report highlights a 2% year-on-year decrease in Q1 operating profit, with key concerns still lingering in the EU and China markets. Despite the stock price declining by 16% since the last note, valuations are appearing more supportive. However, challenges persist in the EU and China, with both regions experiencing stagnant top-line growth and significant issues in the heat pump segment.
Mark Chadwick‘s report emphasizes that Daikin’s full-year guidance remains unchanged, but there are potential risks on the downside. The stock’s performance has underperformed the Topix by approximately 6%, reflecting the broader market sentiment towards the company. With uncertainties looming in key markets and the stock facing downward pressure, analysts are keeping a bearish outlook on Daikin Industries based on the latest research insights available on Smartkarma.
A look at Daikin Industries Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 3 | |
Dividend | 3 | |
Growth | 3 | |
Resilience | 3 | |
Momentum | 2 | |
OVERALL SMART SCORE | 2.8 |
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
Daikin Industries, Ltd. shows a steady outlook for the long term based on the Smartkarma Smart Scores. With an overall score of 3 across key factors such as Value, Dividend, Growth, and Resilience, the company’s performance is expected to remain stable. Although its Momentum score is slightly lower at 2, the overall picture indicates a solid foundation in various areas. Daikin Industries, a manufacturer of air conditioning equipment and fluorine chemical products, appears to have a balanced approach to its operations, reflecting in its consistent scores across different factors.
Looking ahead, Daikin Industries‘ outlook seems optimistic with a focus on maintaining value, growth, and resilience. The company’s core businesses in air conditioning and fluorine chemicals position it well for future growth potential. While there may be room for improvement in momentum, the overall Smart Scores suggest that Daikin Industries is well-positioned to weather market fluctuations and capitalize on its strengths in the long term.
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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