TDK Shares Slump After Guidance Cut on Weak Demand for Data Centers, Cars
By Kosaku Narioka
TDK shares fell sharply Thursday morning after the Japanese electronics maker posted a 53% drop in its first-quarter net profit and cut its full-year guidance due to weaker demand for parts used for data centers and cars.
Shares were recently 9.8% lower at 4,913 yen after falling as much as 11% earlier.
TDK said after Wednesday's market close that net profit dropped to Y14.725 billion ($102.7 million) for the quarter ended June from Y31.41 billion in the year-earlier period.
First-quarter revenue fell 1.4% to Y503.40 billion as demand for electronics parts weakened for smartphones, tablets and laptops, and hard-disk drives for data centers.
TDK cut its revenue and net profit forecasts for the fiscal year ending March 2024. The company said sales of hard-disk-drive parts are likely weaker than previously thought, as production of hard-disk drives for data centers is expected to drop sharply, and sales of electronics parts for cars are probably lower as some clients control their inventories.
It expects revenue to drop 9.7% to Y1.970 trillion, down from Y2.020 trillion projected previously, and net profit to fall 8.0% to Y105.00 billion, down from Y147.00 billion forecast earlier.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
August 02, 2023 22:30 ET (02:30 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening In the Markets This Week
-
Can the Fed Declare Victory on Inflation?
-
After Earnings, Is Coinbase Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?
-
Is ServiceNow Stock a Buy After Earnings and Its Investor Day?
-
3 Stocks to Buy and 3 Stocks to Sell After Earnings
-
Today’s Market Volatility Could Provide Tomorrow’s Opportunities
-
40 of the Best Investment Picks
-
Tech Stock Dividends Are Changing the Face of Dividend Growth Investing
-
Roblox Earnings: Weakening Engagement Has Weighed On Growth
-
The Best Gaming Stocks to Buy
-
Energy Transfer Earnings: M&A Drives Guidance Increase In Solid Quarter
-
The Best Healthcare Stocks to Buy
-
Going Into Earnings, Is Home Depot Stock a Buy, a Sell, or Fairly Valued?