Turnaround Progress in Nissan Q1 Results, 2022 Guidance Unchanged; Slight FVE Increase to JPY 1,490

No-moat-rated Nissan reported fiscal first-quarter 2022 (fiscal year 2022 ends March 2023) earnings per share of JPY 12.04, beating the FactSet consensus EPS of JPY 9.93 by JPY 2.11 and JPY 2.21 higher than the JPY 9.81 (excluding special items) reported in the year-ago period. While automotive revenue increased 8% to JPY 1.88 trillion, consolidated volume plunged 25% to 520,374 vehicles. The revenue percent change outperformed volume as average revenue per unit jumped 45%. Pricing, mix, and favorable currency were partially offset by the Ukraine crisis, chip shortage, and China COVID-19 lockdowns. Consolidated revenue of JPY 2.14 trillion also beat consensus of JPY 2.08 trillion. Consolidated operating profit of JPY 64.9 billion was down 14% from JPY 75.7 billion a year ago as financial services operating profit dropped 11%. However, automotive operating profit doubled, albeit from a low base, to JPY 12.0 billion from JPY 6.0 billion last year as turnaround efforts were partially offset by higher costs including raw materials, energy, logistics, and other inflationary pressures.