Shares of Nikon (NINOY - Free Report) declined 11.1% to date following the announcement of second-quarter fiscal 2019 results on Nov 8. Notably, the stock has lost 20.5% compared with the industry’s decline of 21.4% on a year-to-date basis.
The company reported earnings of 15 cents per share, which came in line with the Zacks Consensus Estimate.
Revenues of ¥168.7 billion ($1.51 billion) increased 6.8% year over year.
Earnings for the first-half of the year, which ended on Sep 30, surged 63.6% to ¥57.41 per share. Revenues increased 2.2% to ¥335.7 billion.
Imaging Products business revenues declined 14.8% year over year to ¥71.8 billion. The top line suffered due to decline across all product lines. Management stated that compact digital camera market and interchangeable lens type market continued to decline. However, demand for D850 is still high after a year of release. Additionally, demand for the newly launched Z 7 and D3500 is also good. For the first half of the year, which ended on Sep 30, revenues decreased 13.9% to ¥150.9 billion.
Precision Equipment business’ revenues surged 46.3% from the year-ago quarter to ¥62.6 billion. FPD Lithography business benefited from increased sales of large-sized panels including G10.5 and Gen 8, which was offset by decline in sales of mid-to-small size panels. In the first half of the year, revenues increased 24.1% to ¥121.6 billion.
Healthcare business revenues increased 13.4% from the year-ago quarter to ¥16.1 billion. The increase was due to international revenue growth from biological microscopes and retinal imaging diagnosis instruments. For the first half of the year, revenues increased 16.7% to ¥29.4 billion.
Industrial Metrology and Others business’ revenues increased 9.6% year over year to ¥18.3 billion. Increase in revenues from CNC video measuring devices and solid-state lasers contributed to Industrial’s revenue growth. Additionally, the segment also benefited from the company’s restructuring initiatives. In the first half of the year, revenues increased 13.1% to ¥33.7 billion.
Management noted that improvement in capital investment and increase in personal consumption in Japan led to gradual recovery of the economic situation in first half of the year.
Nikon Corp. Price, Consensus and EPS Surprise