Yamaha Reports Decline in Nine-Month Profit and EPS

Yamaha shows mixed financial results with a profit decline. The company reported a profit of 14.29 billion yen, marking a 31.0% drop from last year, and basic earnings per share fell to 29.13 yen. Despite the downturn, revenue increased by 2.6%.

Date: 05-02-2025

AI Rating: 4

Profit Decline and EPS Impact
Yamaha reported a significant decline in profit for the nine-month period, with profits to owners of the parent down 31.0%, amounting to 14.29 billion yen. This drop in profitability is concerning for investors, indicating potential challenges the company may face moving forward. Additionally, the decline in earnings per share (EPS) to 29.13 yen from 40.84 yen suggests that shareholder returns are diminishing, which could negatively affect stock performance.

Core Operating Profit and Revenue Growth
In contrast, Yamaha did show some resilience with its core operating profit increasing to 31.93 billion yen, up 14.9%. This improvement can provide some level of optimism, as it demonstrates the company's ability to manage its core operations more effectively amidst declining profit figures. Furthermore, revenue growth of 2.6% to 350.69 billion yen, while modest, indicates that the company is still generating sales growth, which might cushion the impact of the profit decline.

Future Projections
Looking ahead, Yamaha's projections for fiscal 2025 indicate a further decline in basic earnings per share to 27.66 yen from the previous anticipated 36.82 yen. This downward revision in earnings expectations adds a layer of negativity for investors, signaling challenges in maintaining profitability. However, maintaining a full-year revenue forecast of 460.0 billion yen can be perceived as a stabilizing factor.

Stocks: YAMHF