Nihon M&A Center

Nihon M&A: Earnings Drop Due to New Revenue Recognition Criteria; Guidance Seems Unrealistic

Equity Bottom-Up
342 Views, 04 May 2022 20:25
EXECUTIVE SUMMARY
  • Nihon M&A Center (2127 JP) reported 4QFY03/2022 results last week. Revenue declined 20.5% YoY to JPY6.1bn (vs consensus JPY7.6bn) while OP decreased 60.3% YoY to JPY889m (vs consensus JPY3.1bn)
  • Revenue for FY03/2022 increased 16.1% YoY to JPY40.4bn (vs guidance JPY39.bn) while OP increased 7.1% YoY to JPY16.4bn (vs guidance JPY18bn).
  • The company also announced in December last year that there were irregularities in recording sales and the share price has declined 47% since then.
detail (4-minute read)
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Shifara Samsudeen, ACMA, CGMA
Equity Analyst
LightStream Research
JapanIndustrialsEquity Bottom-UpEquity Capital Markets

A chartered management accountant with more than 10 years of rich experience in investment research and financial analys... 

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