Seiko Epson raised its consolidated earnings forecast for the fiscal year ending March 2027 and announced a share buyback. The news was welcomed by investors, sending the stock higher for a fourth straight session and to a new year-to-date high.
Seiko Epson raised its consolidated earnings forecast for the fiscal year ending March 2027, revising sales upward from ¥1.45 trillion to ¥1.51 trillion, operating profit from ¥86 billion to ¥101 billion, and net profit from ¥59 billion to ¥69 billion. The revised assumptions reflect the impact of higher crude oil prices and soaring memory prices, while incorporating the positive impact of the weaker yen, the effects of price adjustments, and a one-off increase in profit from refunds of US tariffs. The company also revised its assumed exchange rates from ¥151 to ¥156 per dollar and from ¥175 to ¥178 per euro.
First-quarter results for April through June, announced at the same time, showed sales of ¥367.241 billion, operating profit of ¥20.601 billion, and net profit of ¥12.984 billion. Continued demand from the industrial and data-center sectors, growth in microdevices centered on crystal devices, new project wins in China, and strong commercial and industrial printing performance lifted results. Strong performance in inkjet solutions also contributed, in addition to the product lineup centered on crystal devices.
The share buyback will cover up to 17 million shares or ¥30 billion, with the acquisition period running from 7 August through 31 March next year. The company plans to cancel the shares acquired. The announcement was also viewed by the market as positive.