Nidec Corp. to Report Strong Third-Quarter Results

Nidec Corp. is set to announce its third-quarter financial results on Wednesday, providing valuable insights into the company's performance. Here are the key details:

Net Profit Forecast

According to a Quick poll of analysts, Nidec's net profit for the three months ended December 31 is projected to have more than doubled to 40.46 billion yen ($273.1 million), compared to 17.43 billion yen in the same period last year.

Revenue Forecast

The Quick poll suggests that Nidec's third-quarter revenue is estimated to have increased by 2.4% from the previous year to reach 582.42 billion yen.

Stock Performance

After experiencing an 18% drop in the October-December quarter, Nidec's stock has shown a modest 0.5% gain in 2024 so far. As of Friday, shares closed at 5,726 yen.

Aspects to Monitor:

1. EV Motors: In October, Nidec revised its sales forecast for electric-vehicle traction motors for the fiscal year ending in March, projecting a decrease from 545,000 units to 350,000 units and a decline in revenue from 78.1 billion yen to 48.9 billion yen. With intensifying competition in China, Nidec's primary market for EVs, investors will closely observe the performance of its EV motor business.

2. Margins: Nidec witnessed an improvement in its second-quarter operating profit margin, rising from 8.8% to 9.4% compared to the previous year, thanks to cost-cutting measures. Given the current challenge of high inflation faced by businesses globally, investors will pay attention to margin trends.

3. Outlook: Nidec has forecasted a decline of 1.9% in revenue to 2.2 trillion yen and anticipates a more than triple growth in net profit to 165 billion yen for this fiscal year. Investors will be focused on any potential adjustments to the company's guidance. Notably, Nidec maintained its earnings forecasts in October, despite already achieving nearly two-thirds of the projected net profit for the entire fiscal year by the end of the first half.