ISB (9702) Q3 2024 earnings summary

Executive summary

• 9M revenue and profit reached record highs, extending year-over-year growth to eight consecutive periods.

• Continued IT investment demand, particularly from existing customers, supported growth; orders were solid in three of four business areas, excluding Mobility.

Financial highlights

• Nine-month net sales rose 4.0% to ¥25,038m and operating profit rose 2.8% to ¥2,153m.

• Ordinary profit increased 2.3% to ¥2,192m; profit attributable to owners of parent rose 24.9% to ¥1,550m.

• Gross profit was ¥6,106m, up from ¥5,844m; comprehensive income was ¥1,574m, up from ¥1,345m.

• Total assets were ¥18,303m; net assets reached ¥12,943m.

• Earnings per share was ¥135.69, up from ¥108.90 in the prior-year period.

Outlook and guidance

• FY2024 forecasts: net sales ¥33,700m, operating profit ¥2,470m, ordinary profit ¥2,550m and profit attributable to owners of parent ¥1,620m.

• Q3 progress against FY forecasts was 74% for revenue, 87% for operating income and 96% for net income.

• FY2024 earnings per share forecast is ¥141.88; year-end dividend forecast is ¥46.00 per share.

• Mobility orders expected to benefit from automotive focus, expanded projects and new wins; public-sector development orders expected to recover as delayed projects proceed.