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Murata Manufacturing Shares Jump After Guidance Upgrade

By Kosaku Narioka

 

Murata Manufacturing's shares rose sharply after the Japanese electronics-parts maker posted stronger-than-expected second-quarter results and raised its full-year profit forecast due to cost cuts and a weaker yen.

The shares were recently 9.7% higher at 2,718.0 yen after rising as much as 14% earlier Wednesday.

Murata Manufacturing said Tuesday after the market closed that net profit dropped 12% from a year earlier to 75.055 billion yen ($494.8 million) for the three months ended Sept. 30. That surpassed the estimated net profit of Y52.27 billion in a poll of analysts by FactSet.

Second-quarter revenue fell 8.5% to Y442.66 billion, due partly to weaker demand for computers and household appliances.

Nonetheless, Murata raised its net-profit forecast to Y225.00 billion for the fiscal year ending March 2024, citing a weaker yen and cost cuts, up from its previous view of Y164.00 billion.

It also expects higher fiscal-year revenue for the smartphone and wearable segment at Y649.7 billion, compared with its previous forecast of Y600.5 billion.

 

Write to Kosaku Narioka at kosaku.narioka@wsj.com

 

(END) Dow Jones Newswires

October 31, 2023 22:40 ET (02:40 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

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