NEC Corp. Shares Surge After It Posts 29% Rise in Fiscal-Year Operating Profit
By Kosaku Narioka
NEC Corp. shares rose sharply Monday morning after it posted a 29% increase in fiscal-year operating profit on strong demand for information-technology services and projected further earnings growth.
The Japanese information-technology and electronics company said Friday after market close that operating profit increased to 170.45 billion yen ($1.25 billion) for the fiscal year ended March 31, from Y132.525 billion the previous fiscal year.
Revenue rose 9.9% to Y3.313 trillion, thanks to greater demand for information-technology services across various industries. Net profit dropped 19% to Y114.50 billion due to higher tax expenses.
Adjusted operating profit from NEC's enterprise segment climbed 28% to Y73.4 billion owing to higher sales to financial, manufacturing, retail and services clients. Adjusted operating profit from its global segment jumped 63% to Y42.9 billion due partly to the software and submarine businesses.
For the fiscal year that started in April, NEC projected revenue to rise 2.0% to Y3.380 trillion and adjusted operating profit to increase 7.0% to Y220.00 billion.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
April 30, 2023 23:18 ET (03:18 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
After Earnings, Is Home Depot Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Baidu Stock a Buy, a Sell, or Fairly Valued?
-
Why Stocks Are Hitting Record Highs—and What Could Send Them Back to Earth
-
5 Stocks to Buy While They’re Trading at Big Discounts
-
Markets Brief: Tech Stocks Lead Ahead of Nvidia Earnings
-
How Anti-Obesity Drugs Are Innovating the Healthcare Market
-
What’s Happening In the Markets This Week
-
Why Immigration Has Boosted Job Gains and the Economy
-
After Earnings, Is Walmart Stock a Buy, a Sell, or Fairly Valued?
-
Target Earnings: Margins Hold Up, but Top Line Constrained by Weak Discretionary Spending
-
Is Berkshire Hathaway’s Mystery Stock a Buy?
-
After Earnings, Is Uber Stock a Buy, a Sell, or Fairly Valued?
-
Lowe’s Earnings: Tumultuous Macro Weighs on Near-Term Results but Fails to Sway Our Long-Term View
-
Macy’s Earnings: Plan Taking Shape Despite Tough Environment
-
JPMorgan Investor Day: CEO Dimon Pushes Against More Stock Buybacks at Current Prices
-
Should You Buy and Hold an Artificial Intelligence Portfolio?