Earnings Alerts

SMC Corp (6273) Earnings: FY Operating Income Projection Cut, Misses Estimates

By February 14, 2025 No Comments
  • SMC has revised its full-year operating income forecast down to 191.00 billion yen from 214.00 billion yen, missing the market estimate of 208.3 billion yen.
  • The company’s projected net income is 151.00 billion yen, a decrease from the previous figure of 167.00 billion yen and below the estimated 164.86 billion yen.
  • For net sales, SMC forecasts 788.00 billion yen, which is lower than the previous 820.00 billion yen and the market expectation of 807.86 billion yen.
  • Despite these reductions, SMC maintains its dividend forecast at 1,000 yen, which is above the market estimate of 991.11 yen.
  • In the third quarter, SMC reported an operating income of 43.30 billion yen, a 14% year-over-year decrease, failing to meet the estimate of 54.42 billion yen.
  • The third-quarter net income was recorded at 42.19 billion yen, a slight year-over-year decrease of 0.9%, missing the market estimate of 43.78 billion yen.
  • Third-quarter net sales rose by 3.3% year-over-year to 195.40 billion yen, although this figure fell short of the expected 201.2 billion yen.
  • Among market analysts, there are 10 buy recommendations, 5 hold recommendations, and 1 sell recommendation for SMC.

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 leading manufacturer of directional control devices and pneumatic equipment, presents a mixed outlook based on the Smartkarma Smart Scores. While the company demonstrates resilience with a strong score of 4, indicating its ability to weather economic downturns, its momentum lags behind with a score of 2. This suggests a slower growth trajectory in the near future. With value, dividend, and growth all holding steady at a score of 3, SMC Corp seems to maintain a stable position in terms of financial performance and shareholder returns.

Although SMC Corp is poised as a reliable player in the market, the lower momentum score may raise some concerns for potential investors looking for rapid growth opportunities. However, the balanced scores across various factors indicate a well-rounded approach by the company, positioning it as a dependable choice for investors seeking stability and resilience in the long term.


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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