Shares of Japanese electronics-parts maker, Murata Manufacturing, soared as the company reported better-than-expected second-quarter results and increased its full-year profit projection. The positive outcome can be attributed to cost reduction efforts and the impact of a weaker yen.
Impressive Second-Quarter Performance
After the market closed on Tuesday, Murata Manufacturing revealed a 12% decline in net profit for the three months ended September 30, reaching 75.055 billion yen ($494.8 million). Despite the drop, this figure exceeded the estimated net profit of 52.27 billion yen according to a FactSet analyst poll.
Second-quarter revenue also experienced a slight downturn, declining by 8.5% to 442.66 billion yen. The decrease was primarily due to weaker demand for computers and household appliances.
Optimistic Outlook for Full-Year Profits and Revenue
Despite the challenges faced in the second quarter, Murata Manufacturing has raised its net-profit forecast for the fiscal year concluding in March 2024. The new projection stands at 225.00 billion yen, up from the previous estimate of 164.00 billion yen. The company credits this positive adjustment to both cost-cutting measures and the weakened yen.
Furthermore, Murata Manufacturing anticipates higher revenue for the smartphone and wearable segment in the fiscal year. The revised forecast is now set at 649.7 billion yen, compared to the earlier prediction of 600.5 billion yen.
Overall, these positive developments have resulted in a significant boost to Murata Manufacturing's stock price. As of now, the shares have surged by 9.7%, trading at 2,718.0 yen, with an earlier rise of up to 14% on Wednesday.
Graft Polymer faces uncertainty as it expresses concerns about continuing as a going concern. Declining revenue and wider pretax loss prompt search for addition...
Robinson, a UK manufacturer, has sold surplus property and utilized pension funds to reduce debt. The company is also seeking new leadership.
Eli Lilly is predicted to achieve $50 billion in annual sales from weight-loss drugs by 2030, with incretins playing a significant role. The market is projected...