First-quarter earnings announcements from companies with March year-ends have largely concluded, and 407 companies are reported to have announced upward revisions to their current fiscal-year forecasts. However, share-price reactions have been muted, and 11 companies with market capitalizations of at least ¥10 billion were reportedly selected from among the relevant stocks.
First-quarter earnings announcements from companies with March year-ends have largely concluded, and 407 of the 2,188 companies are reported to have raised their full-year forecasts for the current fiscal year. Upward revisions are generally seen as a factor that pushes share prices higher, but in this instance, some cases have shown limited share-price reactions.
The article reportedly selected 11 companies with market capitalizations of at least ¥10 billion from among the companies with large upward revisions, and listed those whose recent share prices had declined compared with prices 5 and 22 business days before the earnings announcements.
The 11 companies are ranked by the size of their upward revisions to operating profit, with the article pointing to a situation in which share prices have lagged even among companies reporting sharp upward revisions.
The article examines the divergence between short-term share-price reactions and earnings fundamentals, and is said to suggest scope for future reassessment and potential investment opportunities.