Revenue and Earnings Exceed Epson’s Expectations for Latest Quarter
Seiko Epson of Japan reported that revenue and earnings exceeded its expectations for its latest fiscal quarter, due to a continuing depreciation of the Japanese yen, steady growth in its information-equipment, devices and precision products, and sensing and industrial-solutions business segments.
For the quarter, total revenue was 246.2 billion yen, an increase of 10.9 percent versus the same quarter a year ago, while earnings were 46.5 billion yen, an increase of 835.2 percent versus the 4.9 billion yen reported for the same quarter a year ago.
The firm also reported that service costs decreased more than expected due to changes in its defined benefit plan, resulting in better-than-expected profit from operating activities and profit for the period.
In Epson’s inkjet printer and All-in-One business, revenues for the quarter exceeded its forecast. Additionally:
- In developed economies, unit shipments were lower than forecast due to aggressive pricing by competitors, but average selling prices were higher.
- Sales of high-capacity ink tank models and commercial printers expanded in line with expectations.
- Sales of consumables exceeded expectations due to improvement in the composition of the installed base.
- Business profit also beat expectations, primarily due to printer cost reductions, and fixed-cost reductions and postponement.
Epson also revised its full-year fiscal-year forecast, increasing both projected revenues and earnings. It now forecasts revenues of 503 billion yen, versus its previous outlook of 480 billion yen, and earnings of 100.0 billion yen, versus its previous forecast of 80.0 billion yen.