- Nidec forecasts operating income at 260 billion yen, falling short of the estimated 263.72 billion yen.
- Net income is anticipated to be 200 billion yen, slightly lower than the estimated 202.21 billion yen.
- Projected net sales stand at 2.60 trillion yen, below the estimated 2.72 trillion yen.
- The company anticipates a dividend of 42.50 yen, compared to the expected 46.97 yen.
- For the first half, Nidec forecasts operating income at 120 billion yen, less than the 125.72 billion yen estimate.
- The first-half net income is estimated at 92 billion yen, only slightly under the 92.58 billion yen forecast.
- First-half net sales are expected to reach 1.28 trillion yen, not meeting the 1.33 trillion yen estimate.
- Market consensus includes 16 buying recommendations and 4 holds, with no sell recommendations.
Nidec Corp on Smartkarma
Independent analysts on Smartkarma have expressed positive sentiments on Nidec Corp, a company that specializes in electric motors and other machinery. According to analyst Scott Foster‘s report titled “Nidec (6594 JP): Growth Prospects Improving,” the company’s recent 3Q results and increasing demand for server cooling units and energy storage indicate continued growth potential. With valuations at a decade low, Foster recommends a buy for the medium- to long term. Additionally, Mark Chadwick‘s analysis emphasizes Nidec’s strategic focus on operational improvements and value-boosting mergers, such as the acquisition of Makino Milling.
In another report by Chadwick, “Nidec | Pragmatism Shines; Q3 Results,” the CEO transition and a shift towards operational enhancements are highlighted as key drivers for stock potential. The acquisition of Makino is projected to enhance Nidec’s capabilities in the global machine tool industry, providing cost synergies and innovative solutions for high-growth sectors like electric vehicles and aerospace. The sentiments shared by these analysts underscore the positive outlook and growth opportunities for Nidec Corp in the foreseeable future.
A look at Nidec Corp 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
Based on the Smartkarma Smart Scores, Nidec Corp shows a balanced outlook across key factors. With an overall score of 3 out of 5 for Value, Dividend, Growth, and Resilience, the company demonstrates stability and potential for long-term performance. In particular, its diversified focus on small precision motors used in various industries, along with expansion into home appliances and automotive sectors, provides a solid foundation for growth and resilience.
Although the Momentum score is slightly lower at 2, Nidec Corp‘s strategic acquisitions and ownership of leading subsidiaries in specialized areas like LCD panel handling robots and camera shutters indicate a forward-looking approach towards innovation and market positioning. As the world’s top manufacturer in its niche, Nidec Corp continues to navigate the changing landscape with adaptability and a well-rounded business strategy.
### NIDEC CORPORATION is the world’s leading manufacturer of small precision motors mainly used in HDD and optical disk drives. The company has extended its focus to the home appliance and automotive markets. NIDEC is active in M&A and its subsidiaries include the world’s leading manufacturers of LCD panel handling robots and camera shutters. ###
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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