Disco (6146) Q3 2024 earnings summary

Executive summary

• Net sales for FY2024 Q3 reached 93.6 billion yen, up 21.5% year-over-year but down 2.8% sequentially from Q2.

• Net income rose 97.9% year-over-year to 31.8 billion yen, with a 7.0% increase from the previous quarter.

• Net sales for the nine months ended December 31, 2024, rose 34.1% year-over-year to ¥272,596 million.

• Net income surged 74.8% year-over-year to ¥85,252 million for the same period.

• Ordinary income margin hit a record high at 44.9% for the quarter, supported by a high gross profit margin of 71.2%.

Financial highlights

• Gross profit was 66.6 billion yen in Q3, up 26.5% year-over-year but down 3.5% sequentially.

• Operating income for the nine months ended December 31, 2024, was ¥115,098 million, up 52.7% year-over-year.

• Ordinary income reached ¥117,080 million, a 54.6% increase year-over-year.

• Net income per share rose to ¥786.74 from ¥450.30 year-over-year.

• Total assets increased to ¥628,786 million as of December 31, 2024, with an equity ratio of 72.0%.

Outlook and guidance

• Q4 FY2024 net sales forecasted at 100.4 billion yen, with operating income of 37.7 billion yen and net income of 27.6 billion yen.

• Full-year FY2024 net sales forecast revised to ¥373,000 million, up 21.3% year-over-year.

• Net income forecast for the year ending March 31, 2025, is ¥112,900 million, a 34.1% increase year-over-year.

• Year-end dividend forecast at 245 yen per share, with a performance-linked policy targeting a 25% payout ratio.

• Dividend forecast revised to an annual total of ¥369.00 per share.