Sharp (6753) Q2 2027 earnings summary

Executive summary

• H1 net sales were ¥883,464m, down 7.0% YoY; operating profit fell 55.3% to ¥12,944m and profit attributable to owners of parent fell 76.2% to ¥10,825m.

• Results were nearly in line with plan and FY guidance was unchanged; Brand Business sales grew 1.0% YoY and Display Device operating losses narrowed through structural reforms.

Financial highlights

• H1 ordinary profit was ¥14,939m vs. ¥33,586m; basic EPS was ¥16.67 vs. ¥70.05.

• Q2 net sales were ¥448.2bn, down 6.2% YoY; operating profit fell 65.3% to ¥4.7bn, ordinary profit fell 44.4% to ¥8.3bn, and bottom-line profit fell 57.7% to ¥7.7bn.

• H1 operating-profit factors included selling prices +¥45.5bn, cost/model mix -¥33.7bn, FX -¥16.7bn, overhead +¥8.1bn, and sales -¥19.2bn.

• Gross profit was ¥197,955m vs. ¥210,925m; SG&A rose to ¥185,010m from ¥181,969m.

• Comprehensive income fell to ¥4,131m from ¥54,950m, including other comprehensive loss of ¥6,954m in H1.

Outlook and guidance

• FY forecast unchanged: net sales ¥1,770,000m, operating profit ¥30,000m, ordinary profit ¥22,000m, profit attributable to owners of parent ¥25,000m, and EPS ¥38.50.

• H2 forecast: net sales ¥886.6bn, operating profit ¥17.1bn, ordinary profit ¥7.1bn, and bottom-line profit ¥14.2bn.

• Forecast exchange rates were ¥160 per US dollar and ¥183 per euro; H1 average rates were ¥159.37 and ¥184.35, respectively.