- Shimano has revised its full-year operating income forecast to 46.00 billion yen, down from the previously expected 70.00 billion yen and below the market estimate of 70.87 billion yen.
- The company anticipates net income of 30.50 billion yen, considerably less than the prior forecast of 63.80 billion yen and the market estimate of 65.44 billion yen.
- Net sales for the full year are projected at 460.00 billion yen, slightly decreasing from the earlier anticipation of 470.00 billion yen but very close to the market projection of 469.97 billion yen.
- Despite financial adjustments, Shimano expects to maintain its dividend at 339.00 yen, which is higher than the market’s estimate of 330.33 yen.
- For the second quarter, Shimano reported net sales of 123.87 billion yen, marking a 6.5% increase year over year, surpassing the estimated 116.89 billion yen.
- Second quarter operating income was 11.98 billion yen, a 32% decline from the previous year, and lower than the expected 16.34 billion yen.
- In the same period, Shimano experienced a net loss of 5.83 billion yen, contrasting with a profit of 20.02 billion yen from last year and the predicted profit of 13.3 billion yen.
- Analyst recommendations for Shimano’s stock include 3 buys, 6 holds, and 1 sell.
Shimano Inc on Smartkarma
Independent analyst coverage on Smartkarma shows varying sentiments towards Shimano Inc. Mark Chadwick‘s report, “Coasting, Not Sprinting,” highlights Shimano’s Q1 profits exceeding expectations but maintains cautious full-year guidance, suggesting a slow recovery in bike markets with improving margins and stable inventories.
Contrastingly, Chadwick’s “Gears Grinding” report warns of potential impact from US tariffs on Shimano’s profits due to supply chain exposure, possibly leading to stretched valuation. However, his “A Slow but Steady Ascent” report justifies Shimano’s cautious guidance for FY25 with a recovering bike market, strong financial position, and quality performance, positioning it as a long-term winner at a fair price.
A look at Shimano Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
Shimano Inc, a company known for manufacturing products for bicycling, snowboarding, and fishing, has received a mixed outlook based on Smartkarma Smart Scores. With a Value score of 3, the company shows some promising aspects in terms of its financial value. However, its Dividend and Growth scores both stand at 2, indicating room for improvement in these areas. On the positive side, Shimano excels in Resilience with a score of 5, showcasing its ability to weather market challenges effectively. In terms of Momentum, the company scores a 3, suggesting a moderate level of market momentum.
In summary, Shimano Inc‘s overall outlook, as reflected by the Smartkarma Smart Scores, highlights its resilience as a key strength. Despite average scores in other areas such as Value, Dividend, Growth, and Momentum, the company’s strong resilience score of 5 indicates its ability to withstand and adapt to market fluctuations effectively. With a diversified product range including running gears, brake parts for bicycles, fishing rods, reels, and tackles, Shimano’s export markets in Asia, Europe, and the United States provide a solid foundation for its long-term growth and sustainability.
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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