Canon Lifts Profit Forecast On Strong Demand for its Devices
Japan’s imaging solutions provider Canon Inc. lifted its annual earnings forecast for the third time on Tuesday as it saw growing demand for its products, including surveillance cameras and organic light-emitting diode (OLED) screen production equipment.
The Tokyo-based multinational group expects its operating profit to climb by 52.9 percent from the previous year’s ¥228.9 billion to ¥350 billion ($3.07 billion) for the year through December, instead of its past estimate of ¥330 billion in July.
Estimated net income rose to ¥245 billion ($2.15 billion), adding 62.6 percent to the ¥150.7 billion a year earlier.
Canon also anticipates net sales to grow by 19.9 percent to ¥4.1 billion ($35.82 million).
Canon Reports Higher Profits for the Third Quarter
Canon’s upbeat projection came after it reported better-than-expected earnings result for the third quarter, driven by gains from its OLED equipment and network surveillance cameras.
Net income in the three months ended September 30 was up by 158.6 percent from last year’s ¥24.4 billion to ¥63.1 billion ($553.6 million). Diluted earnings per share rose to ¥58.39 against ¥22.33.
Net revenue in the quarter added 27.7 percent to ¥994.5 billion ($8.73 billion), compared to ¥778.8 billion the same period last year.
Operating profit more than doubled by as much as 101.1 percent from ¥40 billion a year earlier to ¥80.5 billion ($706.7 million), surpassing analysts’ expectation of ¥69.43 billion.
The positive results were mainly headed by strong sales and demand from its medical devices, OLED equipment, as well as network cameras. Demand for its consumer cameras slightly fell, while its inkjet printers remained unchanged.
Canon also said that weaker yen supported its profits in the third quarter, when the currency recorded 110.93 against the US dollar.
In addition, sales overseas represented about four-fifths of the company’s overall revenue in the first nine months of the year, with the US being its largest market, accounting for over a quarter.
Canon’s higher annual earnings expectation and positive profits result showed that their effort to expand beyond a global camera market has so far been effective.
Shares of Canon closed up 0.6 percent higher to ¥4,095 on Tuesday.
If you want to learn new things and learn strategies about the market, BWorldpedia is the site you should visit! We provide profound and useful insights about the market and across a plethora of topics related to it.