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Investing.com -- Meidensha (TYO:6508) has raised its fiscal year 2026 operating profit guidance to ¥22.5 billion, representing a 5% year-over-year increase.
The new target falls short of the FactSet consensus estimate of ¥23.3 billion, which could put pressure on the company’s stock price following its recent rally.
The company has significantly reduced its Mobility & Electrical Components operating profit target to ¥0.2 billion from the previous ¥1.3 billion due to weak sales of electric vehicle components. The division is now expected to post a larger loss of ¥2.4 billion compared to the earlier estimate of ¥1.7 billion.
In more positive developments, Meidensha increased its operating profit targets for both Power Infrastructure and Field Service Engineering divisions. The company indicated these upward revisions were partly because its previous forecasts had been conservative.
Management suggested they should have issued a higher operating profit guidance for the fiscal year ending March 2026, but noted that delays in power transmission projects for utility companies and railway substations amid labor shortages have challenged their previous sales forecast.
The company also reduced its sales target for vacuum capacitors, citing weaker sales forecast by Tokyo Electron (TYO:8035).
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