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Investing.com -- Nikon (OTC:NINOY) stock fell 5% after the company reported disappointing first quarter results and cut its first half guidance, citing tariff impacts and weaker demand across key segments.
The Japanese camera and precision equipment maker reported first quarter revenue of ¥158 billion, down 3.5% YoY, and posted an operating loss of ¥1.19 billion. Following these results, Nikon reduced its first half revenue guidance by ¥9 billion to ¥313 billion and now expects an operating loss of ¥8 billion, compared to its previous forecast of a ¥3 billion profit.
The company attributed the guidance cut to several factors, including U.S. tariff impacts, a shift toward lower-end camera models, weakening demand for microscopes due to funding cuts in U.S. academia, delayed sales of IC steppers, and softer expectations in its Digital Manufacturing segment.
For the full fiscal year, Nikon slashed its operating profit guidance to ¥21 billion from ¥36 billion, a reduction of ¥15 billion. Of this cut, ¥8 billion was attributed to its Camera business and ¥4.5 billion to Healthcare. The company maintained its full-year guidance for its Precision Equipment and Components divisions.
The tariff impact, which was not previously included in the company’s guidance, is now projected to reach ¥7.5 billion. Market observers note that Nikon appears to be performing worse than competitors Sony (NYSE:SONY) and Canon in the camera segment.
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