Earnings Alerts

Nippon Sanso Holdings (4091) Earnings Beat Estimates with 40% Increase in 3Q Operating Income

By February 2, 2024 No Comments
  • Nippon Sanso’s 3Q operating income surpassed estimates, reaching 42.63 billion yen, a 40% increase year over year.
  • The estimated operating income was 39.76 billion yen.
  • The company’s net income was 24.85 billion yen, showing a 44% rise from the previous year.
  • Net sales for the 3Q amounted to 316.09 billion yen, a 5.6% increase year over year.
  • The estimated net sales were slightly higher at 322.71 billion yen.
  • For the full year, Nippon Sanso anticipates an operating income of 163.00 billion yen, with the estimate slightly lower at 162.2 billion yen.
  • The company also forecasts a net income of 97.00 billion yen for the year, while the estimate is at 100.09 billion yen.
  • The projected net sales for the year are 1.23 trillion yen, with the estimate slightly higher at 1.25 trillion yen.
  • The company still expects to give out a dividend of 40.00 yen, though the estimate stands at 46.22 yen.
  • The current market outlook for Nippon Sanso is mixed with 1 buy, 5 holds, and 1 sell.
  • All comparisons to past results are based on values reported from the company’s original disclosures.

Nippon Sanso Holdings on Smartkarma

Smartkarma, an independent investment research network, has recently published an insightful article on Nippon Sanso Holdings by Aki Matsumoto. The article, titled “Ownership of Company Stock Is a Key in Managing the Company with the Same Goals as Shareholders“, discusses the issues raised in a Nikkei article published on December 11. In the Nikkei article, it was suggested that the shareholders of Mitsubishi Chemical may want to consider either a tender offer or investing the sale proceeds in a value-generating business. However, the author points out that it may be difficult to exclude the influence of the parent company in business decisions that could significantly impact the parent’s earnings and shareholding. The management of Nippon Sanso, on the other hand, wants to maintain the parent-subsidiary listing, but their small shareholding may make it challenging to manage the company from the same perspective as the shareholders.


A look at Nippon Sanso Holdings Smart Scores

FactorScoreMagnitude
Value3
Dividend1
Growth4
Resilience2
Momentum4
OVERALL SMART SCORE2.8

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

According to the Smartkarma Smart Scores, Nippon Sanso Holdings has a promising long-term outlook. With a score of 4 for growth and momentum, the company is expected to continue expanding and performing well in the market. This is supported by the fact that Nippon Sanso Holdings produces a variety of industrial gases, such as oxygen, argon, and nitrogen, which are in high demand in various industries.

However, the company may face some challenges in terms of value and resilience, with scores of 3 and 2 respectively. This could be due to factors such as increasing competition and potential fluctuations in demand for industrial gases. Nonetheless, Nippon Sanso Holdings is still considered a strong and stable company, as indicated by its score of 1 for dividend. This means that investors can expect a steady stream of income from the company’s frozen food and thermos manufacturing businesses.

In summary, Nippon Sanso Holdings has a lot of potential for growth and momentum, but investors should also consider its value and resilience factors. As a leading producer of industrial gases and a stable dividend provider, the company is well-positioned in the market and could continue to perform well in the long run.


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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