Olympus Shares Slide After First-Quarter Earnings Disappoint

By Ronnie Harui

Olympus's shares slumped early Thursday after the company reported first-quarter earnings that disappointed some analysts.

Shares of the Japanese company were recently 11% lower at 1,997.00 yen ($13.89) after earlier touching Y1,927.00, the lowest intraday level since February 2021, according to FactSet.

The manufacturer of optical and digital precision technology said after Wednesday's market close that fiscal first-quarter revenue totaled Y207.72 billion for the three months ended June 30, up from Y192.27 billion for the same period a year earlier. Adjusted operating profit fell to Y28.27 billion from Y29.74 billion.

First-quarter earnings undershot the company's targets, Citi Research analysts said in a report. "We gather Q1 sales missed plan by around 3% and adjusted operating profit by roughly 25%," the analysts said.

Olympus's insistence that the targets in its new three-year plan aren't conservative caused further disappointment, Citi said.

Although the company's first-quarter earnings were "clearly disappointing," if the shares decline below Y2,000.00, some investors might show renewed interest, Citi added.

Write to Ronnie Harui at ronnie.harui@wsj.com

(END) Dow Jones Newswires

August 09, 2023 22:34 ET (02:34 GMT)

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