7-Eleven Owner's Shares Slump After Profit Falls on Weak International Business
By Kosaku Narioka
Seven & i Holdings shares fell sharply Friday morning after its first-quarter net profit dropped 35% due to weakness in its overseas convenience-store business, missing analysts' expectations.
The company's shares were recently 6.1% lower at 5,788 yen after falling as much as 6.4% earlier.
The Japanese operator of 7-Eleven and other retail stores said Thursday after market close that net profit fell to Y42.18 billion ($305.5 million) for the quarter ended May 31 from Y65.04 billion a year earlier. That undershot the estimate of Y61.08 billion from a poll of analysts by FactSet.
Operating profit for its overseas convenience-store business dropped 52% to Y20.98 billion as retail gas prices fell and its profit margin for gas sales narrowed.
Seven & i said the gas sales profit margin has improved since April.
The company kept its revenue and net profit projections unchanged for the fiscal year ending February 2024. It continues to expect revenue to fall 5.6% to Y11.154 trillion and net profit to rise 1.4% to Y285.00 billion.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
July 13, 2023 22:07 ET (02:07 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
5 Undervalued Stocks to Buy to Play a Little Defense
-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
After Earnings, Is GE Aerospace Stock a Buy, a Sell, or Fairly Valued?
-
3 Good Stocks to Buy with Your Tax Refund in 2024 (Or with Any Extra Money)
-
SoFi Earnings: Revenue Growth Slows on Lower Loan Growth and Higher Credit Costs
-
Tesla: Full Self-Driving Approval In China Supports Our View for Deliveries Growth In 2024
-
Philips Earnings: Firm Reaches $1.1 Billion Settlement Agreement
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year