Earnings Alerts

DISCO Corp (6146) Earnings Analysis: 1Q Operating Income & Net Sales Miss Forecasts Despite Positive Fourth Quarter Results

• For the first quarter, Disco forecasts an operating income of 27.10 billion yen, falling short of the estimated 40.04 billion yen.

• The company also predicts a net income of 18.90 billion yen for 1Q, which is lower than the estimated 29.78 billion yen.

• It anticipates net sales to reach 75.30 billion yen, a miss from the estimate of 92.75 billion yen.

• Looking at the fourth quarter results, Disco reported an impressive operating income of 46.13 billion yen, indicating a 47% year-on-year increase.

• The actual operating income surpassed the estimated 39.63 billion yen.

• Additionally, the net income was 35.43 billion yen, marking a 38% increase from the previous year.

• This was higher than the estimated 31.09 billion yen.

• Remarkably, the net sales were 104.30 billion yen, a 32% increase year-on-year.

• These sales exceeded the estimated 93.89 billion yen.

• To date, Disco stock enjoys 14 ‘buy’ ratings, 6 ‘hold’ ratings, and zero ‘sell’ ratings.

• These comparisons to past results are based on values reported by from the company’s original disclosures.


DISCO Corp on Smartkarma

Analyst coverage of DISCO Corp on Smartkarma by Brian Freitas showcases insights on Asian index rebalances, IPO Fast Entry, and M&A changes. The recap highlights large flows into Asian-focused ETFs, with notable changes in various indices. For instance, Strike Energy replaces Costa Group Holdings in the S&P/ASX 200 index. Inflows into mainland China and India ETFs were significant, indicating investor interest in these markets.

Brian Freitas‘ research on Smartkarma also delves into index rebalances like NKY, TW Div+, ASX200, and NZX50, among others. The insights focus on the implementation of rebalances in China and upcoming index changes across multiple countries. Notably, there were substantial inflows into the Tracker Fund of Hong Kong, despite market fluctuations, underlining continued ETF investor interest amidst market movements.


A look at DISCO Corp Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience5
Momentum5
OVERALL SMART SCORE3.6

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

DISCO Corp‘s long-term outlook appears promising based on the Smartkarma Smart Scores analysis. The company scores high in Growth, Resilience, and Momentum, indicating a solid foundation for future success. With a Growth score of 4, DISCO Corp is likely to see steady expansion and development in its market presence. Additionally, a Resilience score of 5 suggests the company’s ability to weather economic uncertainties and maintain stability. The high Momentum score of 5 further signifies strong positive market sentiment and potential for continued growth.

Despite moderate scores in Value and Dividend factors, DISCO Corp‘s overall outlook seems optimistic, supported by its core business of manufacturing industrial machinery for key industries. With a focus on products for the semiconductor, electronics, and construction sectors, the company plays a vital role in facilitating the production of popular consumer goods like personal computers, digital cameras, and video game systems. This strategic positioning, coupled with favorable Smartkarma Smart Scores, bodes well for DISCO Corp‘s future performance and growth prospects.


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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