Tokyo Electron (8035) Earnings Surpass Expectations: 3Q Operating Income Hits ¥199.62B

Tokyo Electron on Smartkarma

Analyzing Tokyo Electron on Smartkarma, independent analyst Nicolas Baratte provided a bullish outlook in his recent report titled “Tokyo Electron Beats Its 2Q25 (Sep-24), Raises FY25 Forecast, Increases Dividend, and a Buyback.” Baratte highlighted that Tokyo Electron exceeded its 1H25 guidance, raised forecasts and dividend, and saw a positive shift in product mix towards AI-related Capex. The stock is deemed to be trading at attractive multiples with strong expected EPS growth. Notably, the company beat its 1H25 guidance by 12% at the Net Income level, raised FY25 Net Income forecasts by 10%, increased dividend by 10%, and announced a small share buyback.

Baratte also pointed out the positive change in product mix, indicating that legacy capex, including China, is expected to decline in 2025 while AI-related Capex is anticipated to increase by approximately 50% YoY. With Tokyo Electron trading at 21x FY25 EPS and 18x FY26 EPS, consensus expectations include a significant 34% EPS growth in FY25 and 22% in FY26. Overall, the analyst sentiment on Tokyo Electron remains optimistic, highlighting the company’s performance, growth trajectory, and strategic financial decisions.

A look at Tokyo Electron Smart Scores

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 for Tokyo Electron, the company is positioned for a promising long-term outlook. With above-average scores in Growth, Resilience, and Momentum, Tokyo Electron appears to be on a positive trajectory. A strong Growth score indicates the potential for the company to expand its operations and profitability over time. Additionally, high scores in Resilience and Momentum suggest that Tokyo Electron is well-equipped to weather economic uncertainties and sustain its performance in the market.

While Tokyo Electron‘s Value score is moderate, indicating the company may not be undervalued compared to its peers, its Dividend score is above average. This suggests that investors may benefit from a consistent dividend payout from Tokyo Electron, providing a source of income alongside potential capital appreciation. Overall, Tokyo Electron‘s overall Smart Scores paint a picture of a company with solid growth prospects and resilience in the face of market fluctuations.

Summary of Tokyo Electron Limited: Tokyo Electron Limited is a manufacturer and seller of industrial electronics products, including semiconductor manufacturing machines, computer systems, and electronic components. The company’s products are distributed not only in Japan but also in the United States, Taiwan, and other regions.

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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