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Nikon's (NINOY) Q1 Earnings & Revenues Hit Hard By Coronavirus

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Nikon (NINOY - Free Report) reported first-quarter fiscal 2021 net loss of ¥37.03 per share against year-ago quarter’s earnings of ¥20.72 per share.

Revenues of ¥64.72 billion decreased 54.7% year over year, primarily due to negative impact of the coronavirus outbreak.

Segment Details

Nikon’s Imaging Products (38.8% of revenues) segment revenues plunged 63% year over year to ¥25.1 billion in the reported quarter.

Nikon witnessed sluggish demand for mid- to high-end products due to the spread of the coronavirus, in addition to the continuous shrinkage of the digital camera-interchangeable lens-type market and the compact digital-camera market.
 

Nikon Corp. Price, Consensus and EPS Surprise

Nikon Corp. Price, Consensus and EPS Surprise

Nikon Corp. price-consensus-eps-surprise-chart | Nikon Corp. Quote

 

Precision Equipment (30.3% of revenues) revenues fell 62% from the year-ago quarter to ¥19.6 billion. The company experienced delays in sale of equipment due to spread of the coronavirus.

However, Nikon stated that capital investments for mid-to-small size panels were on a recovery trend and capital investments for large-size panels were steady in the FPD-related space. The company also witnessed a recovery trend for the semiconductor-related space.

Healthcare (15.9% of revenues) revenues decreased 20% from the year-ago quarter to ¥10.3 billion. Nikon witnessed dull market conditions in both the bioscience field and the ophthalmic-diagnosis field due to the coronavirus.

Industrial Metrology and Others (14.7% of revenues) revenues declined 12% to ¥9.5 billion.

 

Operating Details

In first-quarter fiscal 2021, Nikon reported operating loss of ¥20.5 billion against operating profit of ¥9.3 billion reported in the year-ago quarter.

Imaging Products segment operating loss was ¥8.1 billion against operating profit of ¥3.5 billion reported in the year-ago quarter.

Precision Equipment operating loss was ¥5.1 billion against operating profit of ¥10.3 billion reported in the year-ago quarter.

Healthcare business’ operating loss was ¥2.4 billion compared with a loss of ¥1.4 billion in the year-ago quarter.

Industrial Metrology and Others segment operating loss was ¥400 million against operating income of ¥200 million in the year-ago quarter.

Balance Sheet & Free Cash Flow

As of Jun 30, 2020, cash and cash equivalents were ¥301.38 billion compared with ¥324.03 billion as of Mar 31, 2020.

Moreover, bonds and borrowings were ¥102.6 billion as of Jun 30, 2020 compared with ¥102.8 billion as of Mar 31, 2020.

Guidance

For fiscal 2021, revenues are now projected to be ¥420 billion, down ¥171 billion year over year. While Imaging Products revenues are now expected to decline 42.4%, Precision Equipment is anticipated to decrease 28.6%. Healthcare is also expected to fell 8.1%. However, Industrial Metrology and Others revenues are expected to remain flat year over year.

Operating loss is now estimated to be ¥75 billion. Loss for the fiscal year is projected to be ¥136.19 per share.

Zacks Rank & Stocks to Consider

Nikon currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader technology sector are ANGI Homeservices (ANGI - Free Report) , Agilent (A - Free Report) and Analog Devices (ADI - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ANGI Homeservices, Agilent (A - Free Report) and Analog Devices (ADI - Free Report) are set to report their quarterly results on Aug 10, 18 and 19, respectively.

 

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