EIZO (6737) Q1 2025 earnings summary

Executive summary

• Net sales for the quarter ended June 30, 2024, declined 1.9% year-over-year to JPY18.1B, with operating income dropping sharply to JPY0.06B, reflecting weak demand in key segments and higher costs.

• Net income fell 57.9% year-over-year to JPY0.7B, despite a JPY0.3B foreign exchange gain.

• Comprehensive income rose to JPY6.8B, up 22.5% year-over-year, driven by gains in other comprehensive income.

Financial highlights

• Net sales: JPY18.1B (98.1% YoY), gross profit: JPY5.8B (92.3% YoY), gross margin: 32.1% (down 2.0pt YoY).

• Operating income: JPY0.06B (5.4% YoY), net income: JPY0.7B (42.1% YoY), ordinary income: JPY1.0B (39.9% YoY).

• SG&A expenses rose 9.7% YoY to JPY5.8B, driven by wage increases and R&D investment.

• Earnings per share for the quarter were JPY35.28, compared to JPY83.80 in the prior year.

• Total assets increased to JPY172.0B as of June 30, 2024, from JPY164.8B at March 31, 2024.

Outlook and guidance

• No revision to full-year FY2024 guidance: net sales JPY85.0B (+5.6% YoY), operating income JPY5.5B (+40.7% YoY), net income JPY5.0B (-8.3% YoY).

• Earnings per share forecast for the year is JPY121.50, reflecting a 2-for-1 share split.

• FX sensitivity: JPY1 depreciation impacts operating income by -JPY70M (USD) and +JPY140M (EUR).