Nissan Motor's Second Quarter Results: What You Need to Know
Net Profit Forecast
According to Quick's poll of analysts, Nissan Motor's net profit for the three months ended September 30 is expected to have risen significantly to 90.925 billion yen ($604.7 million). This is compared to a net profit of Y17.36 billion from the previous year, which was impacted by losses related to its exit from Russia.
Revenue Forecast
The Quick poll also estimated that second-quarter revenue would see a 20% increase from the previous year, reaching Y3.035 trillion.
What to Watch
Guidance
In July, Nissan revised its earnings forecasts, attributing the positive changes to effective cost controls and a weaker yen. The company projected a 19% increase in revenue, reaching Y12.600 trillion, and a 53% climb in net profit, amounting to Y340.00 billion for the fiscal year ending March 2024. Investors will be closely monitoring any potential updates or revisions to the annual guidance provided by management.
Margin
Nissan's first-quarter operating-profit margin improved to 4.4%, up from 3.0% in the previous year. This improvement was partially driven by price increases and effective cost controls. Investors will be keen on observing whether there are any further advancements in margins, as car manufacturers globally grapple with high inflation and the alleviation of chip and parts shortages.
China
In July, Nissan adjusted its sales forecast for China, lowering it from 1.13 million units to 800,000 units for the fiscal year. The company also expressed its intention to strengthen its China operations through the introduction of new electric-vehicle models. Investors will be paying close attention to Nissan's perspective on the Chinese market and any new initiatives, given the intensified competition in this market.
By Kosaku Narioka
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