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Panasonic (PCRFY) to Post FY2021 Earnings: What's in Store?
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Panasonic Corporation is scheduled to report consolidated results for fiscal-year 2021 (ended Mar 31, 2021) on May 10. In the last reported quarter, the company delivered an earnings surprise of 32%. However, the company's trailing four-quarter earnings surprise is a negative 8.4%, on average.
With the wide re-spread of the novel coronavirus, the Japan-based multinational electronics company is expected to have recorded lower revenues on a year-over-year basis, given the considerable decline in investment and consumption.
Although Panasonic has been making necessary investments to strengthen its competitiveness in the long run, soft domestic and international sales are likely to have affected its fiscal-year 2021 performance. Despite strong demand for mounting machines at Process Automation and power storage systems used in communication infrastructure, deconsolidation in housing related businesses might have acted as a major headwind for the company’s margins.
Factors at Play
During the fiscal year, Panasonic announced its intent to stop the production of photovoltaic products at its factories in Malaysia and Shimane Prefecture, Japan. The decision, involving the structural reform of its photovoltaic business, will be effective from fiscal-year 2022.
The company expanded its IoT & AI enabled Connected Living platform, Miraie, which includes smart washing machine, Wi-Fi Fan, refrigerator and smart Wi-Fi controller plugs to deliver an enhanced experience to customers based in India. At a time when majority of the customer base is expected to stay indoors for longer periods, these connected home appliances are witnessing a significant surge. This is likely to have been conducive to Panasonic’s business operations.
Its Life Solutions unit also intends to bolster new businesses in Thailand backed by top three priorities — reinforcing the air quality business, expanding the product line of housing equipment and entering into the modular construction housing business with a local partner. Panasonic joined forces with a leading security software company, McAfee, to establish a Vehicle Security Operation Center in a bid to protect connected vehicles against malicious cyber-attacks. This is likely to be reflected in the upcoming results.
Despite such focused endeavors supported by technological innovations and strategic partnerships, Panasonic’s reportable segments — Appliances, Life Solutions, Connected Solutions, Automotive and Industrial Solutions — are likely to have been hit by decreased sales led by the impact of deteriorating market conditions due to the COVID-19 pandemic. These factors might have hampered Panasonic’s top-line performance in fiscal-year 2021.
For the fiscal year, the Zacks Consensus Estimate for adjusted earnings per share stands at 16 cents, which suggests a decline of 15.8% from the prior-year recorded figure.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Panasonic. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Panasonic’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 16 cents.
Zacks Rank: The company currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the first quarter:
Clear Channel Outdoor Holdings, Inc. (CCO - Free Report) is scheduled to release first-quarter 2021 results on May 10. The company has an Earnings ESP of +30.67% and carries a Zacks Rank #2, at present.
Intercorp Financial Services Inc. (IFS - Free Report) has an Earnings ESP of +6.77% and a Zacks Rank of 2. The company is set to report first-quarter 2021 results on May 12.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
Panasonic (PCRFY) to Post FY2021 Earnings: What's in Store?
Panasonic Corporation is scheduled to report consolidated results for fiscal-year 2021 (ended Mar 31, 2021) on May 10. In the last reported quarter, the company delivered an earnings surprise of 32%. However, the company's trailing four-quarter earnings surprise is a negative 8.4%, on average.
With the wide re-spread of the novel coronavirus, the Japan-based multinational electronics company is expected to have recorded lower revenues on a year-over-year basis, given the considerable decline in investment and consumption.
Although Panasonic has been making necessary investments to strengthen its competitiveness in the long run, soft domestic and international sales are likely to have affected its fiscal-year 2021 performance. Despite strong demand for mounting machines at Process Automation and power storage systems used in communication infrastructure, deconsolidation in housing related businesses might have acted as a major headwind for the company’s margins.
Factors at Play
During the fiscal year, Panasonic announced its intent to stop the production of photovoltaic products at its factories in Malaysia and Shimane Prefecture, Japan. The decision, involving the structural reform of its photovoltaic business, will be effective from fiscal-year 2022.
The company expanded its IoT & AI enabled Connected Living platform, Miraie, which includes smart washing machine, Wi-Fi Fan, refrigerator and smart Wi-Fi controller plugs to deliver an enhanced experience to customers based in India. At a time when majority of the customer base is expected to stay indoors for longer periods, these connected home appliances are witnessing a significant surge. This is likely to have been conducive to Panasonic’s business operations.
Its Life Solutions unit also intends to bolster new businesses in Thailand backed by top three priorities — reinforcing the air quality business, expanding the product line of housing equipment and entering into the modular construction housing business with a local partner. Panasonic joined forces with a leading security software company, McAfee, to establish a Vehicle Security Operation Center in a bid to protect connected vehicles against malicious cyber-attacks. This is likely to be reflected in the upcoming results.
Despite such focused endeavors supported by technological innovations and strategic partnerships, Panasonic’s reportable segments — Appliances, Life Solutions, Connected Solutions, Automotive and Industrial Solutions — are likely to have been hit by decreased sales led by the impact of deteriorating market conditions due to the COVID-19 pandemic. These factors might have hampered Panasonic’s top-line performance in fiscal-year 2021.
For the fiscal year, the Zacks Consensus Estimate for adjusted earnings per share stands at 16 cents, which suggests a decline of 15.8% from the prior-year recorded figure.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Panasonic. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Panasonic’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 16 cents.
Panasonic Corp. Price and EPS Surprise
Panasonic Corp. price-eps-surprise | Panasonic Corp. Quote
Zacks Rank: The company currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the first quarter:
BioNTech SE (BNTX - Free Report) is slated to release first-quarter 2021 results on May 10. It has an Earnings ESP of +15.42% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Clear Channel Outdoor Holdings, Inc. (CCO - Free Report) is scheduled to release first-quarter 2021 results on May 10. The company has an Earnings ESP of +30.67% and carries a Zacks Rank #2, at present.
Intercorp Financial Services Inc. (IFS - Free Report) has an Earnings ESP of +6.77% and a Zacks Rank of 2. The company is set to report first-quarter 2021 results on May 12.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>