Earnings Alerts

SMC Corp (6273) Earnings: 1Q Operating Income Falls Short of Estimates with a 15% Y/Y Decline

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  • SMC’s operating income for the first quarter was 44.46 billion yen, a 15% decrease compared to the previous year, and lower than the estimate of 51.59 billion yen.
  • Net income dropped by 29% year-over-year to 34.64 billion yen, falling short of the estimated 41.29 billion yen.
  • Net sales reached 200.18 billion yen, slightly down by 1.3% from the previous year, and below the expected 205.93 billion yen.
  • Looking ahead to the year 2026, SMC forecasts operating income at 215.00 billion yen, surpassing the estimate of 205.92 billion yen.
  • SMC projects net income for 2026 to be 167.00 billion yen, ahead of the estimate of 163.17 billion yen.
  • The company maintains its net sales forecast for 2026 at 850.00 billion yen, higher than the 834.64 billion yen estimate.
  • SMC plans to offer a dividend of 1,000 yen, which is slightly below the estimated 1,015 yen.
  • In terms of stock recommendations, there are 10 buys, 5 holds, and 1 sell.

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A look at SMC Corp Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth3
Resilience4
Momentum2
OVERALL SMART SCORE3.0

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

SMC Corp, a company specializing in manufacturing directional control devices and pneumatic equipment, has received a range of Smartkarma Smart Scores for various factors influencing its long-term outlook. With a Value score of 3, the company demonstrates moderate value potential. Its Dividend score of 3 indicates a stable dividend outlook, while the Growth score of 3 suggests modest growth prospects. SMC Corp has shown resilience with a score of 4, highlighting its ability to weather economic challenges. However, the Momentum score of 2 indicates a slower movement in the market.

In summary, SMC Corp aims to position itself as a comprehensive automated equipment maker, particularly focusing on the increasing market demand for information and communications products. The balanced Smartkarma Smart Scores for Value, Dividend, Growth, Resilience, and Momentum provide a nuanced perspective on the company’s overall outlook, showing strengths in resilience and value, with room for improvement in growth and momentum.


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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