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Nikon's (NINOY) Earnings Rise in Q3, Revenues Decline Y/Y

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Nikon Corporation (NINOY - Free Report) reported third-quarter fiscal 2022 net profit of ¥12.6 billion compared with the year-ago quarter’s figure of ¥8.1 billion.

Revenues were down 11.5% to ¥133.3 billion from ¥150.6 billion in the year-ago quarter due to weak performance across Imaging Products and Precision Equipment segments.

Segment Details

Imaging Products (35.1% of revenues) segment revenues were down 10.7% year over year to ¥46.8 billion in the reported quarter due to weak sales of digital cameras with interchangeable lens. Parts procurement constraints played a spoilsport as well.

Precision Equipment (32.7% of revenues) revenues declined 34.4% from the year-ago quarter to ¥43.7 billion due to decreased sales volume in FPD lithography systems for large panels and new semiconductor lithography systems.

Healthcare (15.1% of revenues) revenues climbed 18.1% from the year-ago quarter to ¥20.2 billion, primarily driven by solid demand for biological microscopes and retinal diagnostic imaging systems in North America and Europe.

Components (10.4% of revenues) revenues increased 80.5% from the year-ago quarter to ¥13.9 billion as a result of significant contributions from EUV related components. Also, sales were strong in optical parts for semiconductor-related products, encoders for industrial equipment and photomask substrates for FPD.

Industrial Metrology and Others (6.7% of revenues) revenues jumped 29% year over year to ¥8.9 billion. The improvement was mainly fueled by sustained business activity in semiconductors and electronic components. Imaging metrology equipment and industrial microscopes boosted sales.

Operating Details

In third-quarter fiscal 2022, Nikon reported operating income of ¥14.8 billion compared with the year-ago quarter’s figure of ¥9.9 billion.

Imaging Products segment operating income was ¥6.3 billion against operating loss of ¥0.8 billion reported in the year-ago quarter.

Precision Equipment operating income was ¥3.1 billion compared with ¥11.4 billion reported in the year-ago quarter.

Healthcare business’ operating income was ¥1.9 billion compared with ¥0.7 billion in the year-ago quarter.

Components operating income was ¥6.7 billion compared with ¥1.2 billion reported in the year-ago quarter.

Industrial Metrology and Others segment operating income was ¥1.7 billion compared with ¥0.5 billion in the year-ago quarter.

Balance Sheet

As of Dec 31, 2021, cash and cash equivalents were ¥367.36 billion compared with ¥369.17 billion as of Sep 30, 2021.

Moreover, long-term bonds and borrowings came in at ¥105.1 billion as of Dec 31, 2021.

Guidance

For fiscal 2022, revenues are now projected to be ¥550 billion, up ¥15 billion from the previous forecast.

Imaging Products revenues are now expected to be up 19.8% year over year to ¥180 billion. Precision Equipment is anticipated to increase 19.1% to ¥220 billion. Healthcare is expected to rise 16.2% to ¥73 billion.

Moreover, Components revenues are expected to jump 63.4% to ¥42 billion. Industrial Metrology and Others revenues are expected to increase 26.8% to ¥35 billion.

Operating profit is estimated to be ¥47 billion. Earnings for the fiscal year are projected to be ¥106.21 per share.

Zacks Rank & Stocks to Consider

Nikon currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the industry are Entegris, Inc. (ENTG - Free Report) , Axcelis Technologies, Inc. (ACLS - Free Report) and Veeco Instruments Inc. (VECO - Free Report) . While Entegris sports a Zacks Rank #1 (Strong Buy), Axcelis Technologies and Veeco Instruments carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Entegris’ current-year earnings has been revised 1.3% upward over the past 30 days.

Entegris delivered a trailing four-quarter earnings surprise of 4.3%, on average. ENTG shares have returned 38.3% in the past year.

The Zacks Consensus Estimate for Axcelis Technologies’ next-year earnings has been revised 4.1% upward over the past 60 days.

Axcelis Technologies delivered a trailing four-quarter earnings surprise of 24.1%, on average. ACLS shares have gained 70.3% in the past year.

The Zacks Consensus Estimate for Veeco Instruments’ next-year earnings has been revised 3.3% upward over the past 30 days.

Veeco Instruments delivered a trailing four-quarter earnings surprise of 13.6%, on average. VECO shares have gained 36.3% in the past year.